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HomeMy WebLinkAbout01/25/2020 - Special MeetingCITY OF NEWPORT BEACH City Council Minutes Planning Session (Special Meeting) January 25, 2020 I. Roll Call - 9:00 a.m. 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 Pledge of Allegiance — Council Member Herdman II. Public Comments on Non -Agenda Items Jim Mosher stated he was glad that the Planning Session meeting was being held in the Council Chambers, believed these meetings have turned into reports from staff of what they want to do during the year instead of what Council wants to do, and suggested Council give voters a chance to change elections to be strictly district -based, or strictly at -large with no districts, and add a run-off system. III. Update on Fiscal Issues Finance Director Matusiewicz utilized a presentation to discuss FY 2018-19 General Fund (GF) reserves, FY 2019-20 revenues and 2020 expenditures, the FY 2020-21 preliminary revenue outlook, funding challenges related to Ca1PERS pensions and service needs, pension plan balance and funded status, a graph of unfunded pension liability based on past losses, Ca1PERS' expected return and risk estimates, and a graph of funded status projections through 2034. In response to Council questions, Finance Director Matusiewicz confirmed that the revenue estimates may be adjusted, will be used as the starting point for the budget, assist with calculating the operating budget, and do not include grants or donations. He reported that paying down unfunded pension liability avoids $115 million of interest for the City. Regarding property tax revenues, he indicated that staff is starting to see the rate of growth begin to slow. Mayor O'Neill reported that the City is one of two cities in Orange County that saw a pension funded status increase, explaining that there is a two year lag in receipt of valuations and the way the City has been paying it down. Additionally, the City is one of only four cities in Orange County to project an unfunded pension liability decrease in the coming year. Council Member Muldoon thanked Council for continuing this effort. Council Member Brenner noted that the City has been doing this while still maintaining a high level of service, noting that other cities have raised taxes to fix roads. She commended the quality of service and the Citv's financial integrity. Mayor Pro Tem Avery agreed that maintaining the City's financial discipline is important, especially in good times, and noted that the City is able to do this because it budgets well and generates a surplus which is used to pay off unfunded pension liability. Council Member Dixon noted that 70 cities in California had measures on their last ballot to raise taxes and believed the City is fortunate that its residents continue to make private improvements and the City continues to move forward with improvement projects. Volume 64 - Page 282 City of Newport Beach Planning Session (Special Meeting) January 25, 2020 City Manager Leung provided a presentation to discuss the changing employment landscape, specifically relative to Assembly Bill 5, Ca1PERS and pension reform, and the City's staffing and resources. She reported that, in some situations, it makes sense to bring on a full-time employee rather than a contract employee. Council Member Muldoon discussed the Contracts Clause of the United States and California Constitutions which states that legislature cannot change a contractual relationship between two parties. He requested that any proposal to do so be delayed. Out of an abundance of caution, Council Member Duffield recused himself during harbor related discussions due to business interest conflicts. City Harbormaster Borsting utilized a presentation to highlight the Harbor Department's accomplishments, code enforcement statistics since July 2018, goals for 2020, and proposed staffing changes. Council Member Dixon suggested that code enforcement data be compared to prior years going forward. In response to Council questions, Harbor Director Borsting discussed increased presence on the harbor, noted the various models of service, indicated they will be working with the Recreation and Senior Services Department to fill the gap that will be left due to UCI's departure from Marina Park, they will be.revisiting dock usage, resource allocation and space allocation, and pointed out that the harbor is the size of New York's Central Park. Mayor Pro Tem Avery noted that the Harbor Department's budget is $1.2 million versus Avalon's $5 million, there is a significant size difference between the harbors, and pointed out the City has residences on its harbor. He believed the City needs to find more funding and commended Harbor Director Borsting. Council Member Brenner indicated she would like to see information about how harbor resources are funded and how that compares to other harbors. Dennis Baker complimented Council and the Harbor Department and suggested adding fire suppression in the harbor by possibly using lifeguard boats as fire suppression boats and placing fire engines on barges to fight fires from the waterside. In response to George Lesley's questions, Mayor O'Neill indicated that Newport Beach Municipal Code Title 17 (Harbor Code) will be discussed at the January 28, 2020 City Council meeting. Further, due to the Public Employee Pension Reform Act's (PEPRA) reduced formula, City Manager Leung reported that pension costs are less since employees are picking up more of the share and reiterated that there may be a financial savings to converting an hourly contract employee to a City employee. IV. Update on Continuing Initiatives Housing Element Update Mayor O'Neill noted that the City discussed this issue during the January 14, 2020 study session and Item 20, pointed out applications for the Housing Element Update Advisory Committee are due today and will be reviewed by himself, Mayor Pro Tem Avery, and Council Member Brenner, discussed the appointment process, and suggested placing the City's letters regarding RHNA on the website. Community Development Director Jurjis indicated that his department is creating a new housing webpage which will include a cheat sheet/FAQs and the letters. He utilized a presentation to discuss the Housing Element Update deadline, need for a consultant, the budget for the General Plan Update (GPU) process, and RHNA units and action plan. He reported that he met with Senator Moorlach and Assemblywoman Petrie -Norris, listed items the City will be challenging, and noted the need for maps Volume 64 - Page 283 City of Newport Beach Planning Session (Special Meeting) January 25, 2020 depicting where housing can be placed, clarification from the California Department of Housing and Community Development (HCD) regarding credits toward the RHNA numbers, and monitoring bills and legislation. Charles Klobe noted Senator Moorlach co-authored SB 50 and Assemblywoman Petrie -Norris voted to approve the housing bills. David Tanner provided a handout that provides steps the State should be taking relative to housing law, believed a housing maximum count should be established, and suggested the City look at the RHNA numbers for the cities that Senator Moorlach and Assemblywoman Petrie -Norris reside in. Jim Mosher believed the RHNA numbers came from SCAG's 2020-2045 Regional Transportation Plan /Sustainable Communities Strategy, noted that the public comment period closed January 24, 2020, asked if staff is monitoring the document since some of the data is incorrect, and agree that the City should protest the concept of continuous growth. Mayor O'Neill requested that staff contact SCAG to correct the data and reported the City sent a letter to Senator Weiner opposing SB 50. Council Member Dixon expressed concern that Senator Weiner supports building skyscrapers to accommodate housing. Community Development Director Jurjis indicated that staff is monitoring SCAG's document and is working with them to amend the data. He expressed concern that the housing plan is not looking at transportation needs. Homelessness Assistant City Manager Jacobs presented the City's homeless strategies and efforts, reported there are 43 homeless individuals in the City, discussed the need for housing vouchers and the challenges between getting a housing voucher and actually housing an individual, reviewed the resources dedicated to this effort, and reviewed outreach statistics for the period covering March to December 2019. Mayor O'Neill stated he received requests to have panhandling signs placed at the intersections of San Miguel Drive/San Joaquin Hills Road and Newport Center Drive/San Miguel Drive, and noted that the video is available for viewing of the Speak Up Newport presentation on homelessness. Council Member Dixon commended the efforts of the City's Rapid Response Team and noted the homeless count dropped from 60+ to 43. Regarding housing vouchers versus utilizing a shelter, Mayor O'Neill reported that the City did not receive any responses to the Request For Proposals (RFP) to operate the City's shelter due to the size of the shelter, but assured everyone that the City is trying to do everything legally it can do. He noted the City has not given up on the regional approach and collaborating with neighboring cities. Council Member Muldoon indicated that the Martin u. Boise decision is vague as to whether a facility must be placed within City limits, but believed the City has the capability to provide beds. He noted he still supports placing a shelter at the City Yard and that having a City shelter should not be taken off the table. Mayor O'Neill confirmed that having a City shelter is not off the table. Mayor Pro Tem Avery believed the City has done a good job at evaluating the issue and keeping humanity in the forefront, while not making mistakes by being too reactive. He stated the City is on the right track, staff has done a great job in getting people housed, and asked that the public not take Council's deliberative actions as not being committed to assisting the homeless. Volume 64 - Page 284 City of Newport Beach Planning Session (Special Meeting) January 25, 2020 Council Member Brenner assured everyone that the City is being strategic about its next steps, noted that it might end up that State funding could only be used toward regional solutions, and asked how the City could utilize the generosity of its citizens to help offset City costs. Council Member Herdman commended staff for reducing the Point -in -Time homeless count from 64 to 43. City Manager Leung utilized a presentation to discuss Permanent Supportive Housing (PSH) for seniors and possible funding sources. John Wayne Airport Deputy City Manager Finnigan utilized a presentation to provide information relative to John Wayne Airport (JWA) achievements in 2019, efforts for 2020, and airport/aviation consultant costs. Solid Refuse Collection and Recycling Public Works Director Webb utilized a presentation to highlight adjustments, changes, and upcoming program modifications to accommodate State law changes and to control costs, and the possibility of changing from a two receptacle residential waste collection system to a three receptacle system. Mayor O'Neill questioned whether a code amendment could be made to require commercial green waste haulers to divert green waste so it counts toward the City's credit, and asked if a hybrid system can be used since space is limited in some parts of the City to accommodate three receptacles and to minimize the number of trucks on the road. Council Member Muldoon asked if it is better for the environment to use the garbage disposal or place trash in the carts. Mayor Pro Tem Avery noted his wife bought Zero Waste Home, believed this will be the future for everyone, and agreed that people need to reduce the amount of waste they create. Council Member Duffield left the meeting at 11:07 a.m. Council Member Dixon discussed New York's strict trash restrictions, emphasized the need for education, and noted that the change may result in a cost to the residents. Council Member Brenner discussed her tour of the Orange County Sanitation District facility. Public Comments: Dennis Baker requested a panhandling sign be placed at Newport Boulevard and Pacific Coast Highway, suggested using a hybrid regional homeless housing model in which cities could utilize each other's empty beds if needed, requested clarification regarding Material Recovery Facilities (MRFs) and waste digesters, and asked if the City has flexibility in who it hires for refuse service. Allan Beek believed the City needs to coordinate with the County and receive better information on whether to use a garbage disposal or place waste in trash. Hoiyin Ip expressed support for supplying green waste receptacles and using a hybrid two or three - receptacle program, commended Mayor Pro Tem Avery for mentioning zero waste, noted that increased housing due to the RHNA numbers will create more trash, and suggested that education programs be provided through the library. Jim Mosher asked whether various Council committees meet publicly, like the Aviation Committee. Volume 64 - Page 285 City of Newport Beach Planning Session (Special Meeting) January 25, 2020 Mary Ann Crowe expressed support for partnering with neighboring cities for homeless shelter needs and expressed concern with drug addiction issues within the homeless community. David Tanner suggested that the City revisit the General Plan relative to energy independence, discussed environmental justice as it relates to the airport area in the General Plan, asked the City to lobby the airport to use best available technologies, and encouraged the City to do what is in the public's best interest regarding the homeless issue, find ways to enforce existing laws, and create a City shelter to house the homeless, even if it is in a parking lot. Leonard Simon indicated that Long Beach established a public-private partnership to fund its arts program and suggested using a similar model to receive public donations to assist with the homeless issue. George Lesley noted that Homeless Coordinator Basmaciyan indicated at the Speak Up Newport event that it was hard to count the homeless population, but today there is a count of 43, discussed the Martin v. Boise case, and believed that jail is a temporary solution since they would be released back onto the streets. Rob Stewart stated his company provides tents to the California Department of Forestry and Fire Protection during emergencies, they could provide tents to the City at a reduced cost to assist with a short term shelter solution, and would contact City staff about his services. In response to the public's questions, Mayor O'Neill stated that there is competition relative to MRFs, but not with digesters; however, a digester is not needed in order to comply with the organic waste diversion requirement; noted that some Council committee meetings are not public, but the City is committed to providing updates and the public could contact the City Council; and discussed the low success rate of temporary shelters compared to PSHs. Assistant City Manager Jacobs added that the City has been tracking how many homeless individuals it has been in contact with for the past 90 days, but noted the count does not include individuals living in their vehicles. Council Member Muldoon discussed options for assisting homeless individuals, believing that jail is not the best place for them unless it is to maintain public safety. Ann Pauli discussed how France is using shipping containers to create inexpensive apartments. Council Member Brenner stated that Orange County Sheriff Barnes indicated that, since many homeless individuals do not have health insurance, sometimes jail is their best option in order to assist them with their drug addiction. V. City Council Meeting Dates City Manager Leung reported that the Newport -Mesa Unified School District may be changing the first day of school to August 24, 2020, so Council may want to consider changing the August 11, 2020 meeting date to August 25, 2020. She also explained why the November 2020 Council dates are scheduled for November 10 and 24, 2020. Following discussion, it was the consensus of Council to move forward with changing the August 2020 Council meeting date and be flexible with future November City Council meeting dates, depending on election dates. Jim Mosher noted that the City historically had two meetings in August, but this was amended in the Charter recently, and pointed out that many California cities meet weekly. Volume 64 - Page 286 City of Newport Beach Planning Session (Special Meeting) January 25, 2020 VI. Current and Proposed Capital Projects Mayor O'Neill noted that the draft Capital Improvement Program (CIP) budget is not available yet, but those discussions will begin at the March 10, 2020 study session. Council Member Brenner announced she would be recusing herself during discussions relative to the Grant Howald Park Rehabilitation project due to real property interest conflicts. Council Member Herdman announced he would be recusing himself during discussions relative to the Balboa Island drainage system projects due to real property interest conflicts. Council Member Muldoon announced that he no longer is employed by the entity involved with telecommunications; however, out of an abundance of caution, he would be recusing himself from the following project discussions since he recused himself at previous meetings: 1. Santa Ana Avenue/Avon drive — Sidewalk and Slope Improvement 2. City Streetlight Rehabilitation and LED Lamping (three circuits in Eastbluff) 3. West Coast Highway Landscape Improvements (between Newport Boulevard and the City Oil Field) 4. Traffic Signal Rehabilitation Project 5. Grant Howald Park Rehabilitation 6. Superior Avenue Bridge and Parking Lot (Sunset View Park) 7. Advanced Water Metering Infrastructure 8. Underground Utility Assessment Districts 111, 113, 116, 116b and 117 9. Lido Fire Station No. 2 Replacement Public Works Director Webb utilized a presentation to discuss current capital projects related to facilities, streets and drainage, transportation, parks, harbors and beaches, water quality and environmental, water and wastewater, and miscellaneous projects; and highlighted the Central Library Lecture Hall project, Lido Fire Station Replacement project (Council Member Muldoon left the dais), Junior Lifeguard Building project, Balboa Island Drainage System project (Council Member Herdman left the dais), Lower Harbor Dredging project, potential new projects/programs, and funding needs. In response to Council questions, Public Works Director Webb indicated that staff will be seeking more public input relative to the Ocean Boulevard Pavement Replacement project, provided updates relative to the West Coast Highway Landscape Improvements project (Council Member Muldoon left the dais) and the West Newport Streetscape project, noted the Cliff Drive Park clubhouse is proposed to maintain the same design, reported that the American Legion bulkhead cap replacement will be paid for with tidelands funds, stated that the restaurant on the Newport Pier will be removed during the pile work, indicated that the Arches Storm Drain Dry Weather Diversion project would assist with the bacteria closures that occur near the turning basin, noted the Carnation Avenue sewer main is being replaced due to age and since a new street is scheduled to be be installed, discussed challenges and solutions surrounding Assessment District 117 (Council Member Muldoon left the dais), and reported that Congressman Rouda is supportive of the dredging project, is helping the City secure funding, and Mayor Pro Tem Avery and Council Member Duffield will provide an update at the next Council meeting. Regarding the Central Library Lecture Hall, Mayor O'Neill noted that an item is on the January 28, 2020 Council meeting agenda to form an ad hoc committee to bring back a proposal regarding funding and develop a series of milestones. Charles Klobe asked that Council direct staff to look into the increased number of purple pipes throughout the City. Volume 64 - Page 287 City of Newport Beach Planning Session (Special Meeting) January 25, 2020 Gina Lesley stated she is disappointed that there is not a fourth phase for the West Coast Highway Landscape Improvements project (Council Member Muldoon left the dais) since the sidewalks are narrow, requested the City ask the mobile home park owner to build a new fence, and questioned why the sidewalk below Sunset Ridge Park is made of asphalt. She stated she has a meeting with Caltrans in February about their facility on Coast Highway, hoped the City could join her, and believed Caltrans would like the City to buy the land. Public Works Director Webb stated that the City has not been able to fund Phase 4, Caltrans has talked about widening the sidewalk and possibly installing different plants, and he will be speaking with the Caltrans Director next month. Hoiyin Ip noted that the City is proposing to use synthetic turf at some of its parks, but expressed concern since it is made of plastic. VIII. Adjournment - Mayor O'Neill thanked everyone for attending, then adjourned the meeting at 12:10 p.m. The special meeting 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 January 23, 2020 at 11:00 a.m. Leilani I. Brown City Clerk Will O'Neill Mayor Volume 64 - Page 288