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NEWPORT BEACH
City Council Staff Report
February 28, 2017
Agenda Item No. 15
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Leilani I. Brown, City Clerk - 949-644-3005,
(brown@newportbeachca.gov
PREPARED BY: Leilani I. Brown, City Clerk
PHONE: 949-644-3005
TITLE: Petition for Referendum of Resolution No. 2016-127 Relating to the
Museum House Residential Project
ABSTRACT:
On December 21, 2016, the community group Line in the Sand filed a referendum petition with
the City of Newport Beach (City) relating to City Council Resolution No. 2016-127. Resolution
No. 2016-127 approved a General Plan Amendment and certain California Environmental Quality
Act (CEQA) documents for the Museum House Residential Project. The City Council now has
the option to repeal Resolution No. 2016-127 in its entirety (and the related approvals) or schedule
this item for a public vote.
RECOMMENDATION:
a) Determine this action is exempt from the CEQA pursuant to CEQA Guidelines Section 15270,
which states that projects that a public agency rejects or disapproves are not subject to CEQA
review. Alternatively, if the City Council decides to submit Resolution No. 2016-127 to the
electorate, determine this action is exempt from 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;
b) Repeal Resolution No. 2016-127 in its entirety (and the related approvals) by waiving full
reading, directing the City Clerk to read by title only, introducing Ordinance
No. 2017-3, An Ordinance of the City Council of the City of Newport Beach, California,
Repealing All Approvals for the 100 -Unit Museum House Residential Project Located at
850 San Clemente Drive (PA2015-152), and passing to second reading on March 14, 2017;
OR
c) Direct the City Clerk to return at a future City Council meeting with resolutions calling for an
election to submit Resolution No. 2016-127 to the electorate.
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Petition for Referendum of Resolution No. 2016-127
Relating to the Museum House Residential Project
February 28, 2017
Page 2
FUNDING REQUIREMENTS:
A special election was not anticipated in the City Clerk's FY 2016/17 budget. In the event the City
Council calls a special election for a vote on the referendum, the City Clerk will return to the City
Council to request additional appropriation to cover the election costs, if needed. Exact costs for
the special election are not available at this time; however, depending upon the attachments that
are mailed to the voters, the cost may range from hundreds of thousands to millions of dollars.
DISCUSSION:
On November 29, 2016, the City Council approved Resolution No. 2016-127, which approved
General Plan Amendment No. GP2015-001 which changed the land use designation for property
located at 850 San Clemente Drive from Private Institutional (PI) to Multi -Unit Residential (RM -
100) and adopted CEQA facts and findings and a statement of overriding considerations for the
Museum House Residential Project.
Following the approval of Resolution No. 2016-127, a community group, Line in the Sand,
circulated a referendum petition challenging the resolution. On December 21, 2016, the
referendum petition was submitted to the City. In accordance with the City Charter and California
Elections Code, the City Clerk received and examined the referendum petition.
On January 25, 2017, the Orange County Registrar of Voters confirmed that the petition contained
the requisite number of valid signatures of electors of the City of Newport Beach to qualify the
petition for an election and the City Council accepted the certificate at its February 14, 2017 City
Council meeting. The cost of verification of signatures on the referendum petition was
approximately $22,400.
The effect of the certification is that (i) the effective date of Resolution No. 2016-127 (General
Plan Amendment No. GP2015-001), is suspended, and (ii) the City Council is required to
reconsider Resolution No. 2016-127 (General Plan Amendment No. GP2015-001), pursuant to
Elections Code Section 9237. In reconsidering Resolution No. 2016-127, the City Council must
either:
1. Repeal Resolution No. 2016-127 and other related approvals and actions; or
2. Submit Resolution No. 2016-127 to a vote of the electorate either at (a) the next General
Municipal Election (November 6, 2018), or (b) a Special Election ordered for such purpose
and held at least 88 days after the date of such order (Elections Code Section 9241).
Repealing Resolution No. 2016-127 and Related Actions
If the City Council repeals Resolution No. 2016-127 (General Plan Amendment
No. GP2015-001) or if the City Council orders an election and a majority of the voters at said
election do not vote in favor of the subject resolution, the resolution cannot be readopted by the
City Council for a period of one year after the date of repeal by the City Council or disapproval of
the resolution by the voters (Elections Code Section 9241).
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Petition for Referendum of Resolution No. 2016-127
Relating to the Museum House Residential Project
February 28, 2017
Page 3
If it is the desire of the City Council to repeal all of the Museum House Residential Project
approvals and related actions, the City Council may introduce Ordinance No. 2017-3 (Attachment
A) which, upon its effective date, would repeal the following City Council actions:
a) Certification of Final Environmental Impact Report No. ER2016-002 and approval of a
Mitigation Monitoring and Reporting Program (Resolution No. 2016-126);
b) Approval of General Plan Amendment No. GP2015-001 and adoption of California
Environmental Quality Act Facts and Findings and a Statement of Overriding Considerations
(Resolution No. 2016-127);
c) Approval of Site Development Review No. SD2016-001 and revocation of Use Permit
No. UP2005-17 and Modification Permit No. MD 2004-059 related to the Orange County
Museum of Art (Resolution No. 2016-128);
d) Approval of Tentative Tract Map No. NT2016-001 (Resolution No. 2016-129);
e) Approval of Traffic Study No. TS2015-004 (Resolution No. 2016-130);
f) Adoption of a Planned Community Development Plan No. PC2015-001 that amends the San
Joaquin Plaza Planned Community (PC 19) (Ordinance No. 2016-23); and
g) Approval of Development Agreement No. DA2016-001 (Ordinance No. 2016-24).
Calling an Election
If the City Council chooses to call an election for the voters to consider Resolution
No. 2016-127 (General Plan Amendment No. GP2015-001), the election may be consolidated
with the next General Municipal Election on November 6, 2018, or the Statewide Primary Election
(Non -Presidential) to be held on June 5, 2018; or the election would be a stand-alone Special
Election to be held after 88 days from calling the election.
The approximate cost of placing the referendum on the ballot for the various elections may be
as follows:
November 2018 General Election: approx. $ 95,000
Statewide Primary Election: approx. $120,000
Stand -Alone Special Election: approx. $300,000
It is the City staff's opinion that the exhibits are not required to be printed in the Sample Ballot;
however, if printed, the estimated costs are as follows:
November 2018 General Election: approx. $4.1 million
Statewide Primary Election: approx. $4.2 million
Stand -Alone Special Election: approx. $4.3 million
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Petition for Referendum of Resolution No. 2016-127
Relating to the Museum House Residential Project
February 28, 2017
Page 4
If the City has other elections scheduled for either the November 2018 General Municipal Election
or the Statewide Primary Election, (e.g. City Council Member elections), the estimates include the
costs for those races. Additionally, the cost of either the November 2018 General Municipal
Election or the Statewide Primary Election is also dependent upon the number of other cities
holding consolidated elections.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this action is not subject to the CEQA pursuant to CEQA
Guidelines Section 15270, which states that projects that a public agency rejects or disapproves
are not subject to CEQA review. Alternatively, if the City Council decides to submit Resolution
No. 2016-127 to the electorate, determine this action is exempt from 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.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of the
meeting at which the City Council considers the item).
ATTACHMENT:
Attachment A — Ordinance No. 2017-3
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ATTACHMENT A
ORDINANCE NO. 2017-3
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
NEWPORT BEACH, CALIFORNIA, REPEALING ALL
APPROVALS FOR THE 100 -UNIT MUSEUM HOUSE
RESIDENTIAL PROJECT LOCATED AT 850 SAN
CLEMENTE DRIVE (PA2015-152)
WHEREAS, an application was filed by Related California Urban Housing, LLC
(Applicant) with respect to property located at 850 San Clemente Drive, and legally
described as Parcel 2 of the Parcel Map, in the City of Newport Beach (City), County of
Orange (County), State of California, as shown on a map recorded in Book 81, Pages 8
and 9 of Parcel Maps, in the office of the County Recorder of said County;
WHEREAS, the project includes demolition of the existing 23,632 -square -foot
Orange County Museum of Art building to accommodate the development of a 25 -story,
100 -unit residential condominium building with two levels of subterranean parking;
WHEREAS, a public hearing was held on November 29, 2016, in the Council
Chambers located at 100 Civic Center Drive, Newport Beach. A notice of time, place, and
purpose of the public hearing was given in accordance with the Newport Beach Municipal
Code (NBMC). Evidence, both written and oral, was presented to, and considered by, the
City Council at this public hearing;
WHEREAS, the City Council adopted resolutions certifying Environmental Impact
Report No. ER2016-022 and approving a Mitigation Monitoring and Reporting Program;
approving General Plan Amendment No. GP2015-001 and adopting California
Environmental Quality Act (CEQA) Facts and Findings and a Statement of Overriding
Considerations; approving Site Development Review No. SD2016-001 and revoking Use
Permit No. UP2005-017 and Modification Permit No. MD2004-059; approving Vesting
Tentative Tract Map No. NT2016-001; and approving Traffic Study No. 2015-004;
WHEREAS, the City Council introduced ordinances approving Planned Community
Development Plan No. PC2015-001 and Development Agreement No. DA2016-001 and,
passed said ordinances to a second reading on December 13, 2016;
WHEREAS, on December 13, 2016 the City Council conducted second readings
and adopted the proposed ordinances approving Planned Community Development Plan
No. PC2015-001 and Development Agreement No. DA2016-001;
WHEREAS, subsequent to the City Council's adoption and approval of the project's
documents, a group of residents circulated and turned in a referendum petition challenging
the project's approval;
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Ordinance No. 2017-3
Page 2 of 4
WHEREAS, City Charter Section 1003 provides for the City to follow the California
Elections Code for the processing of referendums;
WHEREAS, the City Clerk working in conjunction with the Orange County Registrar
of Voters verified and certified the requisite number of signatures were obtained for the
referendum petition under California Elections Code Section 9240;
WHEREAS, California Elections Code Section 9241 provides the City Council with
the option of repealing the resolution subject to the referendum in its entirety or submitting
the resolution to the voters either at the next regular municipal election or at a special
election called for the purpose; and
WHEREAS, the City respects the will of its residents and desires to avoid the
expenses associated with an election by repealing the resolution and associated project
approvals in their entirety.
NOW THEREFORE, the City Council of the City of Newport Beach ordains as
follows:
Section 1: The City Council hereby repeals, in its entirety, Resolution No. 2016-
126, A Resolution of the City Council of the City of Newport Beach, California, Certifying
Environmental Impact Report No. ER2016-002 and Approving a Mitigation Monitoring and
Reporting Program for the Museum House Project Located at 850 San Clemente Drive
(PA2015-152).
Section 2: The City Council hereby repeals, in its entirety, Resolution No. 2016-
127, A Resolution of the City Council of the City of Newport Beach, California, Approving
General Plan Amendment No. GP2015-001 to Change the Land Use Designation from
Private Institutional (PI) to Multi -Unit Residential (RM -100), for a 100 -Unit Residential
Project Located at 850 San Clemente Drive and Adopting California Environmental
Quality Act Facts and Findings and a Statement of Overriding Considerations Regarding
the Museum House Residential Project (PA2015-152).
Section 3: The City Council hereby repeals, in its entirety, Resolution No. 2016-
128, A Resolution of the City Council of the City of Newport Beach, California, Approving
Site Development Review No. SD2016-001 for the 100 -Unit Museum House Residential
Project and Revoking Use Permit No. UP2005-017 and Modification Permit No. MD2004-
059 Related to the Orange County Museum of Art Located at 850 San Clemente Drive
(PA2015-152).
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Ordinance No. 2017-3
Page 3 of 4
Section 4: The City Council hereby repeals, in its entirety, Resolution No. 2016-
129, A Resolution of the City Council of the City of Newport Beach, California, Approving
Tentative Tract Map No. NT2016-001 for the 100 -Unit Museum House Residential Project
Located at 850 San Clemente Drive (PA2015-152).
Section 5: The City Council hereby repeals, in its entirety, Resolution No. 2016-
130, A Resolution of the City Council of the City of Newport Beach, California, Approving
Traffic Study No. TS2015-004 for the 100 -Unit Museum House Residential Project
Located at 850 San Clemente Drive (PA2015-152).
Section 6: The City Council hereby repeals, in its entirety, Ordinance No. 2016-
23, An Ordinance of the City Council of the City of Newport Beach, California, Adopting
Planned Community Development Plan No. PC2015-001 Amending the San Joaquin
Plaza Planned Community (PC -19) Located at 850 and 856 San Clemente Drive
(PA2015-152).
Section 7: The City Council hereby repeals, in its entirety, Ordinance No. 2016-
24, An Ordinance of the City Council of the City of Newport Beach, California, Approving
Development Agreement No. DA2016-001 for the 100 -Unit Museum House Multi -Family
Residential Project Located at 850 San Clemente Drive (PA2015-152).
Section 8: The recitals provided in this ordinance are true and correct and are
incorporated into the operative part of this ordinance.
Section 9: The City Council finds the introduction and adoption of this ordinance
is not subject to the California Environmental Quality Act (CEQA) pursuant to CEQA
Guidelines Section 15270, projects which a public agency rejects or disapproves are not
subject to CEQA review.
Section 10: If any section, subsection, sentence, clause or phrase of this
ordinance is for any reason held to be invalid or unconstitutional, such decision shall not
affect the validity or constitutionality of the remaining portions of this ordinance. The City
Council hereby declares that it would have passed this ordinance and each section,
subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or
more sections, subsections, sentences, clauses or phrases be declared invalid or
unconstitutional.
Section 11: Except as expressly modified in this ordinance, all other Sections,
Subsections, terms, clauses and phrases set forth in the NBMC shall remain unchanged
and shall be in full force and effect.
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Ordinance No. 2017-3
Page 4 of 4
Section 12: The Mayor shall sign and the City Clerk shall attest to the passage
of this ordinance. The City Clerk shall cause the ordinance, or a summary thereof, to be
published pursuant to City Charter Section 414.
This ordinance was introduced at a regular meeting of the City Council of the City
of Newport Beach held on the 28th day of February 2017, and adopted on the 14th day of
March, 2017, by the following vote, to -wit:
AYES, CQUNCILMEMBERS
NOES, CQUNCILMEMBERS
ABSENT CQUNCILMEMBERS
KEVIN MULDOON, MAYOR
ATTEST:
LE'ILANI I. BROWN, CITY CLERK
APPROVED A5 TO FORM:
CITY TTORNEY'S OFFICE
AARON C. HARP, CITY ATTORNEY
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