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HomeMy WebLinkAbout01 - Minutes - AmendedCity of Newport Beach Study Session and Regular Meeting January 14, 2020 January 28, 2020 Agenda Item No. 1 Council Member Dixon recommended condensing the timeframe for the Housing Element Update Advisory Committee application period and selection process, suggested that staff may need to determine how much sacreage is available for development in the City, and advised that she is the incoming Chair of the Association of California Cities -Orange County (ACC -OC), will take office on April 1, 2020, and will be in Sacramento with the ACC -OC in a couple of weeks. Nancy Gardner believed that, if the City cannot obtain an extension to the Housing Element deadline, the deadline should not be the driving force because getting the Housing Element right is important. Further, if the City is showing good faith and making every effort, she did not believe the State would impose the harshest penalties. She added that it could be helpful to have input from the environmental community. Allan Beek indicated that construction costs do not make housing affordable. It is the competition of people wanting to live near the beach. He suggested imposing an employment tax to move businesses out and housing into the City. He believed that working cooperatively is the way to achieve housing. Dennis Baker suggested qualifications for the Housing Element Update Advisory Committee and believed the Chair would have to be strong, but collaborative and available. Jean Watt, SPON, agreed with the need to be cooperative and applauded Council for its thorough discussion. She believed that the ideal approach is to reduce the RHNA number, obtain credit for all the previously constructed housing, agree on the number of new units, convert commercial buildings to residential, and learn how to obtain subsidies or philanthropy that will incentivize builders to do the conversions. She indicated that SPON supports the formation of the Housing Element Update Advisory Committee, but does not want a housing crisis to hijack other parts of the General Plan. Further, they want to save Banning Ranch and believed the City should also get credit for uncounted subleased units that charge low rents. Charles Klobe thanked the steering committee and staff for their work on the first phase of the General Plan outreach process. He believed that State mandates are unreasonable, but the City is in an untenable position. He expressed support for the proposed multipronged approach, the formation of the committee, and restarting the outreach process once there is a lull in the RHNA process. He asked audience members to stand to show their support for his comments. Denys Oberman agreed with the multipronged approach and believed the City needs data about what is available without degrading current residential zoning areas and to talk to someone who understands the economics surrounding affordable housing. Becky Adams thanked Council for all their work and expressed concerns about the number of rental units located above garages. She recommended that the City attempt to comply so that it is not fined, but suggested that the construction of housing not be rushed since laws may change. Linda Watkins noted there are no simple solutions, advocated for collaboration, extraordinary leadership, and expertise, and believed the General Plan process should be managed differently than when it was reviewed in 2006. Nancy Scarbrough thanked the steering committee and staff for their work on the General Plan outreach meetings. She noted that most residents will likely be unhappy with the RHNA numbers, but stated their collective anger should be directed at State representatives, not Council. She urged the community to demonstrate its dissatisfaction through its votes. She asked if ADUs and JADUs can be counted toward the RHNA numbers and whether units approved in the prior cycle can be counted. Terry Welsh, President of the Banning Ranch Conservancy, noted they recently received a $50 million donation towards the purchase of Banning Ranch and discussed the Trust for Public Land's negotiations to acquire Banning Ranch. He believed Council should plan for future housing with the idea that Banning Ranch will be open space. Volume 64 - Page 272 City of Newport Beach Study Session and Regular Meeting January 14, 2020 Steve Ray, Executive Director of Banning Ranch Conservancy, reviewed Banning Ranch Conservancy's mission and cautioned Council not to include Banning Ranch in its consideration of housing alternatives since negotiations for the acquisition of Banning Ranch are underway. Jim Mosher urged Council to push back against the RHNA numbers, seek delay, and not give up on home rule arguments. He believed growth is incompatible with a sustainable future and agreed that growth has slowed down in California. He questioned why SLAG is asking that more housing be built when there may not be people to occupy them. Larry Tucker supported a political strategy over a legal strategy to reduce the RHNA numbers. He believed the Housing Element Update Advisory Committee should focus on sites that could accommodate housing, identify and prioritize as many sites as possible, identify as many units as possible until the issue of credits is clarified or RHNA requirements are reduced, have expertise in real estate development and planning, and include resident representation. He cautioned that building heights may need to be increased to accommodate units and to improve the aesthetics of proj ects. David Tanner believed that the impact of housing laws enacted since 2017 will be greater than the impact of the RHNA numbers, the City needs to know the impact of housing laws, especially those in which the City has no jurisdiction, needs data to determine the effect on regional infrastructure, health, and safety, and should proceed with working with other cities. He supported seeking an extension of the Housing Element deadline. If the Housing Element fully complies with laws, the City can advise HCD that it is contingent upon the State mitigating the impacts from State laws and suggested that a committee look at the legal aspects with other cities. He questioned whether cities have been afforded due process and whether these laws are a regulatory taking. Hoiyin Ip thanked the City for its hard work regarding the RHNA numbers and suggested the City not mention its limited water supply in order to avoid privatized water. Mayor O'Neill stated that staff needs to investigate zoning issues for permanent supportive housing as part of very -low-income housing. In response to his question, Community Development Director Jurjis reported that the Vivante Senior Housing Project would count as housing units, but the Harbor Pointe Senior Living Project would not count since it is similar to a hospital. In response to Council Member Muldoon's question, Community Development Director Jurjis reported a limited number of granny flats have been permitted, but others are currently considered illegal units. However, if the City legalizes, the units may be able to be counted. Council Member Muldoon proposed waiving past fees and potential citations, and temporarily waiving all applications going forward as an incentive for property owners to begin the permitting process. He stated he could even support staff knocking on doors to promote the program and implementing grace periods. He noted that occupants of granny flats already use City services and streets. In response to Council Member Dixon's question, Deputy Community Development Director Campbell advised that an inclusion provision, which was removed from the rity Subdivision Code, could require projects over a certain size to include a percentage of affordable housing. Council Member Dixon suggested that Council explore it again. Council Member Herdman stated that there are units being rented out at affordable housing rates rather than market rates, and inquired whether staff could find out how much rent is being charged and possibly find more ADUs or low-income housing. Council Member Brenner indicated that she has been working with Community Development Director Jurjis regarding bachelor units or studios in Corona del Mar. She estimated that there are at least 300 units located north of the highway, the units would not increase the number of people in the community because the renters are already there, proposed utilizing the Corona del Mar Residents Association to identify these properties, and encourage property owners to register the units whether or not they are rented so they can be included in the RHNA count. She believed the Governor and Legislature should develop tax incentives for people to live close to their work and Volume 64 - Page 273 City of Newport Beach Study Session and Regular Meeting January 14, 2020 for businesses to hire people who live near the businesses, and emphasized that a regional solution for transportation is also needed. In response to City Attorney H arp's question, Mayor O'Neill indicated the Housing Element Update Advisory Committee should be composed of nine voting members and an ex officio member, all of whom are to be residents of the City. He noted that the only change to the timeframes is a one-week turnaround for applications. Lanae O'Sheields, Public Affairs Manager for Southern California Gas Company, reported many State agencies are exploring legislation to limit energy choice and mandate fully electrified homes and businesses. She expressed the opinion that electrification of homes and businesses is challenging because of affordability, lack of storage, reliability, and customer choice. She encouraged the Council to adopt a resolution that protects customer choice, local control, continued innovation, and affordability. IV. CLOSED SESSION A. CONFERENCE WITH LEGAL COUNSEL EXISTING LITIGATION (Government Code § 54956.9(d)(1)): 1 matter Ashley Lauren Watts u. Christine Maroney and Monica Aguilar USDC, Central District, Case No. 8:17-cv-01099-AG (SKx) B. CONFERENCE WITH REAL PROPERTY NEGOTIATORS (Government Code § 54956.8): 1 matter Property: 20302 Riverside Drive, Newport Beach, CA 92660 APN: 439-251-05 Agency Negotiators: Grace K. Leung, City Manager Carol Jacobs, Assistant City Manager Jon Lewis, Chief of Police Dennis Birch, Assistant Chief of Police Negotiating Parties: Carole Brown Rich and Kathy Leonard Under Negotiation: Instruct negotiators as to price and terms of payment. V. RECESSED - 6:03 p.m. VI. RECONVENED AT 7:00 P.M. FOR REGULAR MEETING VII. ROLL CALL Present: Mayor Will O'Neill, Mayor Pro Tem Brad Avery, Council Member Joy Brenner, Council Member Diane Dixon, Council Member Duffy Duffield, Council Member Jeff Herdman, Council Member Kevin Muldoon VIII. CLOSED SESSION REPORT - None IN. INVOCATION - Reverend Paul E. Capetz, Christ Church by the Sea X. PLEDGE OF ALLEGIANCE - Council Member Muldoon XI. NOTICE TO THE PUBLIC XII. CITY COUNCIL ANNOUNCEMENTS AND ORAL REPORTS FROM CITY COUNCIL ON Council Member Herdman: • Displayed a slide announcing his Town Hall Meeting on January 15, 2020 at 6:00 p.m. Volume 64 - Page 274 City of Newport Beach Study Session and Regular Meeting January 14, 2020 • Announced that the Orange County Historical Commission recognized the Balboa Island Museum • Advised that the Orange County Mosquito and Vector Control District is forming a new assessment district to raise funds to combat the Aedes mosquito (ankle biter) Council Member Dixon: • In response to concerns regarding the impact of AB 5 on employmenbindependent contracting, City Manager Leung indicated the topic will be discussed during the Planning Session if the analysis is ready Council Member Brenner: Attended the Speak Up Newport meeting regarding homelessness and commended Homeless Coordinator Basmaciyan for her presentation Displayed a slide announcing a mental health forum scheduled for January 29, 2020 at 6:30 p.m. in the Ceommunity Room Council Member Duffield: • Attended a Watershed Executive Committee meeting and a Water Quality/Coastal Tidelands Committee meeting with Council Member Herdman Mayor Pro Tem Avery: • Displayed a slide to announce that a Council study session regarding pedestrianibicycle access in the Newport Heights area will be held on January 28, 2020 Mayor O'Neill: • Displayed slides of new signage encouraging donations to charities rather than panhandlers and announcements regarding the Planning Session on January 25, 2020 at 9:00 a.m.; and the Newport Beach Foundation's application deadline for the Distinguished Citizen spring class • Announced his appointment as Vice Chair of the Transportation Corridor Agencies (TCA) San Joaquin Board XIII. MATTERS WHICH COUNCIL MEMBERS HAVE ASKED TO BE PLACED ON A FUTURE AGENDA • Consideration of Resolution Supporting Balanced Energy Solutions and Maintaining Local Control of Energy Solutions as California Transitions to a Clean Energy Future (Muldoon) It was the consensus of the City Council to bring the item back at a future meeting. XIV. PUBLIC COMMENTS ON CONSENT CALENDAR Regarding Item 14, Mayor O'Neill amended his appointment on the Aviation Committee to appoint Council Member Dixon as the Vice Chair. XV. CONSENT CALENDAR READING OF MINUTES AND ORDINANCES 1. Minutes for the December 10, 2019 City Council Meeting [100-2020] 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. Resolution No. 2020-1: Updating the List of Designated Employees for 2020 Under the City's Conflict of Interest Code [100-2020] Volume 64 - Page 275 City of Newport Beach Study Session and Regular Meeting January 14, 2020 Charles Klobe asked if the demolition of a single-family home and construction of three market -rate rental units would result in three units that would not count towards the RHNA numbers. Motion by Mavor O'Neill, seconded by Council Member Duffield, to a) determine this action is exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to Section 15262 of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3; and b) adopt Resolution No. 2020-3, AResolution of the City Council of the City of Newport Beach, California, Initiating Amendments to Title 20 Entitled "Planning and Zoning" and Title 21 Entitled "Local Coastal Program Implementation Plan" of the City of Newport Beach Municipal Code Related to State Mandated Regulations of Accessory Dwelling and Junior Accessory Dwelling Units (PA2019-248). With Council Member Avery recusing himself, the motion carried 6-0-1 16. Update on Addressing Homelessness [100-2020] Assistant City Manager Jacobs provided an update regarding the new panhandling signs and the addition of homeless resources and information to the website. She reported that staff is planning monthly forums or seminars on homelessness, seeking additional partnerships, and engaging with the County and its system of care. She indicated there have been a number of success stories, the goal is to house people, and staff has created an internal rapid response team comprised of all City departments. City Manager Leung added that staff is focusing on individual assistance, shelter space, and permanent supportive housing, and noted that Council will discuss homelessness in more detail during the Planning Session. She assured everyone that talks about a regional solution continue among cities. Council Member Dixon noted CityNet and staff have completed an inventory of the homeless in the community. Council Member Brenner indicated that the panhandling sign is phrased as delicately as possible, and the more the City can do to encourage people to donate to organizations that help people, the more panhandling will decrease. Mayor O'Neill indicated the Speak Up Newport presentation on homelessness can be viewed on NBTV Without objection, the item was received and filed. XVII. PUBLIC COMMENTS ON NON -AGENDA ITEMS XVIII. Jose Trinidad Castaneda, Climate Action Campaign, shared the purpose of Community Choice Energy and its ability to help the City fulfill its emission reduction goals and reduce energy rates, and to provide more local control over the investment of revenue and energy savings. He stated that Council or individual Council Members can respond to the City of Irvine's letter in order to receive additional information. Mayor O'Neill noted that Council is interested in Community Choice Energy, but the details have to be evaluated. Ryan Reza Farsai expressed concern regarding the modern-day civil war that is taking place in the country and construction of housing on elea-R- dirty property. Tim Stoaks, President of the Friends of Newport Beach Animal Shelter (FONBAS), reported they are in the process of purchasing a building for the animal shelter that would be gifted to the City and indicated they aspire to fiscally support the animal shelter. 18. Request to Waive City Council Policy L-2, Driveway Approach, at 400 40th Street - Encroachment Permit No. N2019-0620 (C-8620-1) [38/100-2020] Kevin Snow and Kim Kierstead, applicants/property owners, thanked Council and staff for visiting the site, agreed with staff s recommendation to waive City Council Policy L-2, and requested that Council consider the requirement for an additional off-street parking space as an option. They noted that the Volume 64 - Page 279