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HomeMy WebLinkAbout06/09/2020 - Regular MeetingCITY OF NEWPORT BEACH City Council Minutes Regular Meeting June 9, 2020 I. ROLL CALL - 5:00 p.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 Kevin Muldoon Absent: Council Member Jeff Herdman (excused) II. PUBLIC COMMENTS Jim Mosher believed Item No. XII, support for the County action to declare houses of worship as essential services, as using taxpayer resources to promote religion, which he felt was contrary to the founding principles of the United States and the State of California. An unidentified speaker shared her experiences with living next door to a short-term rental unit and asked for the Council's help. III. CLOSED SESSION — Council Chambers Conference Room A. CONFERENCE WITH LEGAL COUNSEL EXISTING LITIGATION (Government Code § 54956.9(d)(1)): 1 matter Susan Bidart Riddle u. City of Newport Beach & John Vallely Orange County Superior Court Case No. 30-2015-00808124-CU-WM-CJC; Court of Appeal, 4th Appellate District, Division 3, Case No. G057397 IV. RECESS — 5:09 p.m. V. RECONVENED AT 5:41 P.M. FOR REGULAR MEETING VI. 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 VII. CLOSED SESSION REPORT City Attorney Harp announced that no reportable actions were taken. VIII. INVOCATION — Derek Davis, Second Church of Christ, Scientist, Corona del Mar IX. PLEDGE OF ALLEGIANCE — Council Member Brenner X. NOTICE TO THE PUBLIC XI. CITY COUNCIL ANNOUNCEMENTS AND ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES Council Member Muldoon: • Believed the Newport Beach Police and Fire Departments, the Orange County Sheriffs Department, the Costa Mesa Police Department, and the Seal Beach Police Department did an amazing job assisting with protest demonstrations Volume 64 - Page 421 City of Newport Beach Regular Meeting June 9, 2020 Council Member Brenner: • Agreed with Council Member Muldoon's comment and expressed pride in the people who represented the community • Attended the Homeless Task Force meeting and announced that Police Chief Lewis will be introducing Homeless Liaison Police Officer Carter at a future meeting • Announced the arrest of a homeless person who was involved in an altercation at Smart & Final; and the fire on Ocean Boulevard and Marguerite Avenue which was caused by welding from a neighboring construction site; and requested that the community report concerning activity or if they feel threatened by a homeless person • Encouraged community members to report graffiti to the Police Department • Requested a future agenda item to discuss the Ensign Intermediate School parking project at a future council meeting XII. MATTERS WHICH COUNCIL MEMBERS HAVE ASKED TO BE PLACED ON A FUTURE AGENDA • Resolution in support of the County's action determining houses of worship to be essential services [Dixon] It was the consensus of the City Council to bring this item back at a future meeting. • Review of the Junior Lifeguard Program for Summer 2020 [Muldoon] It was the consensus of the City Council to bring this item back at a future meeting. • Resolution supporting and commending Hoag Hospital for their leadership and effort during the coronavirus pandemic and supporting their independence [O'Neill] It was the consensus of the City Council to bring this item back at a future meeting. XIII. PUBLIC COMMENTS ON CONSENT CALENDAR Regarding Item 5 (Resolution No. 2020-55: Authorizing the Temporary Closure of Selected Streets for the July 4th Holiday Period), Council Member Brenner advised that she met with staff regarding street closures and emergency vehicle access in Corona del Mar during the July 41h holiday and received assurances that the Police Department has the right to close streets in emergency circumstances. Regarding Item 8 (Professional Services Agreement with Erickson -Hall Construction for Lido Fire Station No. 2 Construction Management), Jim Mosher inquired whether funding has been budgeted for the construction management contract and whether construction will be financed. Randall English, Newport Bay Conservancy, thanked Council and the Public Works Department for their high-quality work, discussed the work of biologists involved with Item 6 (Big Canyon Restoration Project — Phase 2A). He also indicated that protestors were polite and well-behaved, and police officers were courteous. XIV. CONSENT CALENDAR READING OF MINUTES AND ORDINANCES Minutes for the May 26, 2020 Special Joint Meeting with the Finance Committee, and May 26, 2020 City Council Meeting [100-20201 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. Volume 64 - Page 422 City of Newport Beach Regular Meeting June 9, 2020 RESOLUTIONS FOR ADOPTION 3. Resolution No. 2020-53: Annual Measure M2 Eligibility Submittal [100-2020] 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. 2020-53, A Resolution of the City Council of the City of Newport Beach, California, Advising OCTA of an Update to the Local Signal Synchronization Plan for the Measure M2 Program, and thereby adopting the updated Local Signal Synchronization Plan; and d) Direct staff to submit all necessary material to OCTA to satisfy the Measure M annual eligibility requirements. Council Member Muldoon recused himself from Item No. 3 due to previous business interest conflicts. 4. Resolution No. 2020-54: Authorization to Apply for the Department of Housing and Community Development Department's LEAP Grant (C-8623-1) [38/100-2020] 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. 2020-54, A Resolution of the City Council of the City of Newport Beach, California, Authorizing an Application for, and Receipt of, Local Government Planning Support Grants Program Funds; and c) Approve Budget Amendment No. 20-049, increasing revenue estimates by $300,000 in the Information Technology (IT) Strategic Fund and increasing General Plan Update expenditure appropriations in the General Fund by a like amount, including related interfund transfers in and out. 5. Resolution No. 2020-55: Authorizing the Temporary Closure of Selected Streets for the July 4th Holiday Period [100-2020] 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. 2020-55, A Resolution of the City Council of the City of Newport Beach, California,- Authorizing the Temporary Closure of Back Bay Drive, the 100 Block of Orange Street from Traffic Off of Pacific Coast Highway, Via Oporto from Via Lido to 32nd 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. CONTRACTS AND AGREEMENTS 6. Big Canyon Restoration Project - Phase 2A - Award of Contract No. 8208-2 (20X12) [38/100-2020] a) Find the requirement for environmental review under the California Environmental Quality Act ("CEQA") is satisfied by the January 22, 2019 Council adoption of Resolution No. 2019-9, A Resolution of the City Council of the City of Newport Beach, California, Adopting Mitigated Negative Declaration No. ND2018-001 (SCH No. 2018081098) for the Big Canyon Coastal Habitation Restoration and Adaptation Project - Phase 2A (PA2018-078), including the Mitigation Monitoring and Reporting Plan, prepared for the Big Canyon Coastal Habitat Restoration and Adaptation Project - Phase 2A (PA2018-078), pursuant to the California Environmental Quality Act, State CEQA Guidelines and City Council Policy K-3; b) Approve the project drawings and specifications; c) Award Contract No. 8208-2 to ECI for the total bid price of $985,348 and authorize the Mayor and City Clerk to execute the contract; and Volume 64 - Page 423 City of Newport Beach Regular Meeting June 9, 2020 d) Establish a contingency of $147,000 (approximately 15 percent of total bid) to cover the cost of unforeseen work not included in the original contract. 7. Amendment No. Three with Global Power Group, Inc. for Maintenance and Repair Services of City Generators (C-6185) [381100-20201 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 Amendment No. Three to the Maintenance/Repair Services Agreement with Global Power Group, Inc., for preventative maintenance and as -needed repair services for City generators; adding $80,000 to the agreement, a one-year extension to the contract term, and authorize the Mayor and City Clerk to execute the Agreement. 8. Approval and Award of Professional Services Agreement with Erickson -Hall Construction for Lido Fire Station No. 2 Construction Management (C-8269-2) [38/100- 20201 a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; and b) Approve a Professional Services Agreement (PSA) with Erickson Hall Construction for the Lido Fire Station No. 2 construction management contract for a not -to -exceed price of $371,150 and authorize the Mayor and City Clerk to execute the agreement. Council Member Muldoon recused himself from Item No. 8 due to previous business interest conflicts. MISCELLANEOUS 9. Planning Commission Agenda for the June 4, 2020 Meeting [100-2020] Receive and file. 10. Adoption of Fiscal Year 2020-21 Appropriations Limit [100-20201 Staff recommends a continuance of this item to the June 23, 2020 City Council meeting. Motion by Mayor Pro Tem Avery, seconded by Council Member Dixon, to approve the Consent Calendar; and noting the recusals on Item Nos. 3 and 8 by Council Member Muldoon, and the amendments to Item No. 1. The motion carried unanimously. XV. ITEMS REMOVED FROM THE CONSENT CALENDAR - None XVI. PUBLIC COMMENTS Kate Malouf, Parks, Beaches & Recreation Commissioner, shared community concerns about the Ensign Intermediate School parking project requiring the removal of trees and requested that Council review the issue or refer it to the Parks, Beaches & Recreation Commission for review. Laurie Bowman expressed support for allowing short-term lodging on Newport Island and believed prohibiting it there is unfair. Charles Gayton requested an in-person meeting with decision -makers regarding short-term lodging on Newport Island and believed that neighbors oppose short-term lodging because there is no enforcement. A Newport Island resident expressed opposition with banning short-term rentals on Newport Island and indicated the desire to work with neighbors to resolve any issues. Volume 64 - Page 424 City of Newport Beach Regular Meeting June 9, 2020 Michael Ivey concurred with prior comments regarding short-term lodging on Newport Island and stated his desire to be allowed the privilege of renting his home and to be respectful of neighbors. Nancy Barfield discussed how students use the trees at Ensign Intermediate School, noted a petition that was signed by 1,100 students expressing support for saving the trees, and suggested that the community stop the project and develop a better plan. XVII. PUBLIC HEARINGS 11. Resolution No. 2020-56: Fiscal Year 2020-21 Budget Adoption; City Budget Hearing; Recommendations from the Finance Committee; and Proposed Budget Revision Items [100-20191 Finance Director Matusiewicz noted the lengthy review process, how difficult this budget year was, and used a presentation to provide an overview of the budget, development dates, and a tiered short- term budget reduction strategy. In response to Mayor O'Neill's questions, Finance Director Matusiewicz reported the $1 million for the Facilities Maintenance Fund will not impact the contingency reserve since staff mistakenly recommended reducing funding for the Facilities Maintenance Fund to zero, but now is recommending funding the $1 million in the current budget. Finance Director Matusiewicz continued the presentation, reviewing General Fund sources and uses, and proposed budget revisions. Council Member Muldoon recused himself from CIP discussions relative to the Balboa Island and Corona del Mar Microtransit Feasibility Study (Items 5, 11 and 12) due to business interest conflicts. City Manager Leung indicated that the revisions to CIP Item 5 do not change the budget appropriation but changes the funding source to recognize grant revenues. Public Works Director Webb added that the project is included in the CIP and the revision identifies the grant funding for the project. Finance Director Matusiewicz continued the presentation by reviewing recommended actions. Mayor O'Neill thanked staff for their efforts working on a challenging budget, Finance Committee Members Brenner and Dixon for their service, and the citizen members of the Finance Committee for their volunteer hours. In response to Council Member Muldoon's questions, Finance Director Matusiewicz stated that $35 million has been appropriated to pay down unfunded pension liability so the City's payment will remain level over the remaining 13-14 years, advised that an additional $5 million is in reserve, noted that staff plans to make additional discretionary payments for the first six months and seek Council approval of an additional $5 million, and added that the City is paying down its pension debt faster than required and, in effect, shortening the life of the unfunded pension liability in total. Council Member Muldoon congratulated staff and the Finance Committee on an amazing job. Council Member Dixon noted how the City is fortunate to be able to pay its unfunded pension liability and expressed her pride in the City's ability to pay above and beyond the minimum amount. In response to her questions, Finance Director Matusiewicz indicated the tiers are a way to bridge the $33.2 million gap, explained the tiers, and stated staff is implementing Tier 5. He added that, if the economy improves, staff would first rebuild reserves and then balance enhanced services moving forward with capital projects. Council Member Dixon pointed out that the City has a balanced budget, and Council will discuss the budget many times going forward while evaluating the state of the economy., Finance Director Matusiewicz indicated staff is not proposing any service level cuts except where mandated. Council Member Dixon commended staff for using this type of framework because it is clear and easy to understand the reductions. Volume 64 - Page 425 City of Newport Beach Regular Meeting June 9, 2020 Mayor O'Neill reported that Council has received emails about the budget for the first time in some time as many cities are discussing funding or de -funding departments, provided 2019 and 2020 statistics for emergency and non -emergency calls to the Police Department, and stated that the City is a full-service city with aging infrastructure, the budget is complicated, and suggested the community understand the budget and services, and recommend specific cuts. In response to Mayor Pro Tem Avery's questions, Finance Director Matusiewicz advised that the most uncertainty pertains to sales tax and Transient Occupancy Tax (TOT) revenues and explained the Finance Committee's analysis. Mayor O'Neill noted various alternatives to implementing tiers should revenue increase or decrease from current expectations. Council Member Muldoon noted that the numerous protests in the City utilized a lot of resources in the City budget, believed that cutting the budget is nonsensical because the community relies on the budget to allow peaceful protests, and stated that neighboring cities have increased budgets for law enforcement services to successfully handle the protests. Council Member Brenner indicated the irony of peaceful protests in light of the biggest complaint, which is that the Police Department is too nice, noted that community policing efforts are recognized and appreciated, and acknowledged there is so much to be proud of in the City. Council Member Dixon stated the City's headcount of 728 full-time equivalents (FTE) has been consistent and that it is a sign of fiscal responsibility and conservative management. She applauded staff for providing consistent services using the same resources. She also complimented the Police Department for handling the protests well. Finance Director Matusiewicz recognized it takes a village to build a budget including department directors, finance staff, City Manager, Council and Finance Committee, and thanked everyone for their outstanding work. Mayor O'Neill opened the public hearing. Jim Mosher took issue with the list of revisions, added that the online proposed CIP budget changed from $113 million to $87 million, inquired whether the budget has been available in the City Clerk's Office for public review for at least 10 days before adoption, questioned the source of funding for the Lido Fire Station, and suggested Council postpone bringing forward the ballot measure regarding the Harbor Commission if none of the incumbents are challenged. David Tanner observed that the use of Sunset Ridge Park has increased since the pandemic began, believed the park can no longer be considered underutilized, and suggested that Council may want to reassess the need for improvements at the park at this time. Charles Klobe asked if staff has addressed Mr. Mosher's written comments regarding the budget. Finance Director Matusiewicz reported that, quite often, revenues exceed expenditures when the budget is reviewed in its totality; however, that is not the case in the operating budget, but frequently the case in the capital and special revenue budgets, explained that the City spends in arrears because revenue not spent in prior years is added to the current year revenue for capital projects, and noted that Mr. Mosher appeared to point to current year revenues only rather than the beginning balance plus current year revenues. Hearing no further testimony, Mayor O'Neill closed the public hearing. In response to Mayor O'Neill's question, City Attorney Harp advised that Council can vote on all revisions in one action. Volume 64 - Page 426 City of Newport Beach Regular Meeting June 9, 2020 Prior to discussing Item 18, Council Member Muldoon noted a recusal on CIP Item 4 (Superior Avenue/West Coast Highway Intersection Improvements) due to prior business interest conflicts. Without objection, the recusal was incorporated into the straw votes and motion. There was a unanimous straw vote to include proposed budget revisions, except for Items 4, 5, 11, and 12. With Council Member Muldoon recusing himself, there was a 6-0 straw vote to include the proposed budget revisions for Items 4, 5, 11, and 12. Motion by Mayor O'Neill, seconded by Council Member Dixon, 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; c) adopt Resolution No. 2020-56, A Resolution of the City Council of the City of Newport Beach, California, Adopting the Budget for the 2020-21 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. 2019-56. The motion carried unanimously. 12. Approval of the Fee Study Update (continued from the May 12, 2020 City Council Meeting) [100-2019] Mayor O'Neill opened the public hearing. Jim Mosher noted the ordinance sets some fees, such as appeal fees, as flat fees when they should be adjusted for cost -of -living increases. Hearing no further testimony, Mayor O'Neill closed the public hearing. Motion by Council Member 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) adopt Resolution No. 2020-29, A Resolution of the City Council of the City of Newport Beach, California, Adopting and Revising Certain Fees Within the Schedule of Rents, Fines, and Fees and Updating the Methodology for Annual Consumer Price Index Calculations; c) adopt Resolution No. 2020-30, A Resolution of the City Council of the City of Newport Beach, California, Updating the Parking Violation Penalty Schedule; and d) waive full reading, direct the City Clerk to read by title only, introduce Ordinance No. 2020-10, An Ordinance of the City Council of the City of Newport Beach, California, Amending Exhibit A to Newport Beach Municipal Code Section 3.36.030 Related to Cost Recovery, and pass to second reading on June 23, 2020. With Council Member Muldoon voting no, the motion carried 6-1. 13. Resolution No. 2020-57: Amend City Council Policy K-3 to Incorporate Vehicle Miles Traveled (VMT) Analysis Methodology [100-2019] City Traffic Engineer Brine utilized a presentation to discuss the history of Senate Bill (SB) 743, Vehicle Miles Traveled (VMT) versus Level of Service (LOS), the Office of Planning and Research's (OPR) Technical Advisory, City VMT and traffic analyses, three steps for VMT analysis, VMT trip types and metrics, the six screening criteria, high quality transit areas, the existing VMT per capita map, and the existing VMT per employee map. Volume 64 - Page 427 City of Newport Beach Regular Meeting June 9, 2020 In response to Mayor O'Neill's question, City Traffic Engineer Brine did not know exactly why Newport Coast exceeded the County's average for VMT per capita, reporting that staff entered land uses for the City into the traffic model, and it calculated and compared the VMT to the County average. In response to Council Member Dixon's questions, City Traffic Engineer Brine indicated any project proposed in the green areas would be exempt from a detailed California Environmental Quality Act (CEQA) analysis, but staff would continue to perform a Traffic Phasing Ordinance (TPO) analysis since it is a factor in decisions because the General Plan contains standards for LOS. He clarified that VMT pertains to the CEQA analysis, and staff will perform both VMT and LOS analyses. City Traffic Engineer Brine continued the presentation, discussing significant thresholds, the step- by-step process, the General Plan Update, mitigation measures, and an amendment to City Council Policy K-3. In response to Mayor O'Neill's questions, City Traffic Engineer Brine explained that the presentation pertained to VMT analysis for land use projects, but there is a separate analysis for transportation projects; it is appropriate to retain the word "traffic;" the phrase "based on substantial evidence" comes from OPR's Technical Advisory, which requires the use of substantial evidence to support changes to OPR's thresholds; the resolution does contemplate substantial evidence; the screening criteria applies Citywide; Council Members would be subject to conflicts of interest; a VMT analysis will be conducted for the General Plan Update; staff will determine the appropriate affordable housing percentage for mixed-use projects; a TPO analysis is not a part of a CEQA analysis, but staff proposes amending City Council Policy K-3 to reinforce staffs intention to conduct a TPO analysis; staff posted VMT information on the City's website for public review and presented the information to the Planning Commission on May 7, 2020; and the State requires a VMT analysis beginning July 1, 2020. City Traffic Engineer Brine recommended eliminating "transit priority area" from City Council Policy K-3, Section H.2.a.i, Land Use Project Screening. In response to Council Member Brenner's question, City Traffic Engineer Brine noted OPR's definitions of "transit areas" overlaps and using "major transit stop" will limit it to projects within a half -mile radius of transit. Mayor O'Neill opened the public hearing. Jim Mosher stated that the policy document has been changed from what the Planning Commission looked at on May 7th, but the threshold guide has not been revised, believed the small number of public comments could be due to holding the Council meeting at an odd hour, noted the staff report mentions some clean-up language in Attachment D, and added the language on page 13-115 about the applicant indemnifying the City may need to be changed to reflect the person with an interest in the property. David Tanner indicated he wrote another letter late this afternoon that expressed his concerns, stated he believed this is a tax to reduce greenhouse gas, noted that Exhibit 1 is different than what is shown in Attachment 3 and is new information, believed projects that are in these areas and that meet the screening criteria will not pay the tax based on the assumption that the projects will not generate significant VMT, questioned the use of the County average because OPR suggests large counties with large areas of open space do not conduct a VMT analysis on the entire county but concentrate on a smaller portion, and believed the item needs more analysis and public review. Hearing no further testimony, Mayor O'Neill closed the public hearing. Mayor O'Neill requested staff follow up regarding Mr. Tanner's comments regarding inconsistencies. He noted there have been a lot of requests for the Governor to delay the implementation of VMT, and indicated that, as allowed under the legislative platform, he will request a delay of the implementation because there is insufficient time for approval of a resolution. In response to his Volume 64 - Page 428 City of Newport Beach Regular Meeting June 9, 2020 questions, Tony Petros, LSA Associates, indicated he has been part of this discussion since 2013 and working with over 20 agencies in the State, including the County; confirmed this is not a tax, but are guidelines for evaluation of projects according to CEQA; noted that OPR's Technical Advisory is the document that provides the substantial evidence for their approach to evaluating VMT impacts; added OPR believes this is the correct way to go about things and the term "presumption" is used throughout, but the presumption is supported by substantial evidence in the document; noted that staff has provided substantial evidence for departing from the document, and each analysis provides legal cover for the City and has been conducted under the direction of the City Attorney's Office; stated the County was selected as the region because it is the greater catchment area for all trips coming out of Newport Beach; and explained that a number of agencies/cities have requested a two year delay. In response to Council Member Muldoon's questions, Mr. Petros indicated the law has been passed and stated VMT analysis will go into effect on July 1, 2020, added that if Council does not adopt VMT, the City will fall strictly under the OPR document with no flexibility when the City's implementation document allows flexibility. Council Member Muldoon reiterated that tonight's action is not a tax, provides flexibility, and is not an option. In response to Council Member Muldoon's questions, City Traffic Engineer Brine agreed that this is not a tax, with Mr. Petros' distinction, the item has no fiscal impact, and if the Council does not approve the VMT document, the City will have to follow Sacramento's version of the document. Motion by Mayor O'Neill, seconded by Council Member Herdman, to a) determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; and b) adopt amended Resolution No. 2020-57, A Resolution of the City Council of the City of Newport Beach, California, Amending City Council Policy K-3 "Implementation Procedures for the California Environmental Quality Act," to Incorporate Vehicle Miles Traveled (VMT) Methodology. The motion carried unanimously. XVIII. CURRENT BUSINESS 14. Resolution No. 2020-58: Resolution of Intention to Renew the Corona del Mar Business Improvement District, Levy Assessments in FY 2020-21 and Fix Time and Place for Public Hearing [100-2019] Bernie Svalstad, Business Improvement District (BID) Chairman, recommended a Council subcommittee approve the $40,000 aspect of the budget rather than the City Council. In response to Council Member Muldoon's questions, Deputy City Manager Finnigan reported that the current action is a resolution of intention, which signals the Council intention to renew the BID for another year. She added that the approval of the 2021 assessment will occur at the next meeting during a public hearing. Council Member Muldoon indicated he was okay with providing the funds but is inclined not to support the BIDS. City Manager Leung advised that the $40,000 came about at the last Council meeting through an ad hoc committee recommendation for a one-time allocation to assist with COVID-related impacts. Mayor O'Neill clarified that the $40,000 was a recommendation with a condition that the BID provide a detailed plan and budget for how that money will be spent. In response to Council Member Muldoon's question, Deputy City Manager Finnigan reported that the $40,000 has been budgeted, but the funds will not be allocated until the Council approves the budget. Council Member Dixon advised that she worked with Council Member Herdman, Council Member Brenner, and staff to determine a course for the future of BIDS, noted in February, the ad hoc committee came to an informal conclusion that City funding of the BIDs would cease with the current budget year and encouraged BIDs to find a way forward; however, COVID-19 occurred and the ad hoc committee decided to recommend funding the BIDs as a way to help businesses in Newport Beach make COVID-19 related expenditures. Volume 64 - Page 429 City of Newport Beach Regular Meeting June 9, 2020 Council Member Brenner added that the BIDS plan to use the funding to lower member assessments. Council Member Muldoon supported the funding but was fearful that some businesses would have difficulty joining BIDs, noted the lack of consequences if a member does not join, and would support renewal for 2021 but wanted to see BIDs phased out. Motion by Council Member 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) approve and/or modify the Corona del Mar Business Improvement District's Fiscal Year 2019-20 Annual Report and its Proposed Fiscal Year 2020-21 Budget; c) direct staff to return to the City Council with the Corona del Mar BID'S detailed plan and budget for how $40,000 in COVID-19 economic relief funds will be utilized before the City of Newport Beach releases the funds; and d) adopt Resolution No. 2020-58, 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, 2020 to June 30, 2021, and Fix the Time and Place of a Public Hearing for June 23, 2020. With Mayor O'Neill voting no, the motion carried 6-1. 15. Resolution No. 2020-59: Resolution of Intention to Renew the Newport Beach Restaurant Association Business Improvement District, Levy Assessments in FY 2020-21 and Fix Time and Place for Public Hearing [100-2019] Motion by Council Member Herdman, seconded by Council Member Dixon, 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) approve and/or modify the Newport Beach Restaurant Association Business Improvement District's Fiscal Year 2019-20 Annual Report and its Proposed Fiscal Year 2020-21 Budget; c) direct staff to return to the City Council with the NBRA BID's detailed plan and budget for how $40,000 in COVID-19 economic relief funds will be utilized before the City of Newport Beach releases the funds; and d) adopt Resolution No. 2020-59, 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, 2020 to June 30, 2021, and Fix the Time and Place of a Public Hearing for June 23, 2020. With Mayor O'Neill voting no, the motion carried 6-1. 16. Annual Appointments to Boards and Commissions [241100-20191 Mayor O'Neill thanked Council Members Herdman and Duffield for serving on the selection ad hoc committee, noted the number of incumbents this year, indicated Patricia Dreyfus and Leonard Simon are excellent candidates for the City Arts Commission, stated appointing Debbie Stevens to the Planning Commission will result in her leaving the Housing Element Update Advisory Committee (HEUAC), and expressed his preference to not lose Ms. Stevens on the HEUAC and her years of experience. Council Member Dixon indicated Woman in Newport Networking (WiNN) encourages women to apply for Council appointments, noted over the last five years, WiNN has dramatically increased the number of female applicants, provided applicant statistics for 2018 and 2019, and added that women should be encouraged to be represented on boards and commissions. Volume 64 - Page 430 City of Newport Beach Regular Meeting June 9, 2020 Council Member Brenner believed Council had really well-qualified candidates, believed a woman should not be promoted over a more qualified man, and noted her support for Debbie Stevens due to her CEQA experience and qualifications. Jim Mosher was pleased to hear discussion tonight, believed the Board of Library Trustees turned 100 years old on June 71h, added that there are four nominees for the Civil Service Board when the City Charter requires five, questioned whether employee groups voted on the Civil Service Board nominees, suggested modification to City Council Policy A-2 so that the City Clerk does not discard applications after two years, and believed the reappointment of incumbents should be a reward for outstanding service. Council Member Muldoon indicated he reminds potential applicants that it is an honor to be chosen for a board or commission, and another thing that matters is their ability to get along with others. Mayor O'Neill reported that the opening of the Balboa Library Branch in 1929 was the start of the public library system. City Clerk Brown read the ballot votes for the Board of Library Trustees as follows: Paul Watkins — Avery, Brenner, Dixon, Duffield, Herdman, Muldoon, O'Neill City Clerk Brown announced that Paul Watkins was reappointed to the Board of Library Trustees for a four-year term. City Clerk Brown read the ballot votes for the Building and Fire Board of Appeals as follows: Saum Nour —Avery, Brenner, Dixon, Duffield, Herdman, Muldoon, O'Neill Rolly Pulaski — Avery, Brenner, Dixon, Duffield, Herdman, Muldoon, O'Neill City Clerk Brown announced that Sam Nour and Rolly Pulaski were reappointed to the Building and Fire Board of Appeals for four-year terms. City Clerk Brown read the ballot votes for the City Arts Commission as follows: Patricia Dreyfus — Avery, Duffield, O'Neill Marie Little —Avery, Brenner, Dixon, Duffield, Herdman, Muldoon, O'Neill Leonard Simon —Brenner, Dixon, Herdman, Muldoon City Clerk Brown announced that Marie Little was reappointed and Leonard Simon was appointed to the City Arts Commission for four-year terms. City Clerk Brown read the ballot vote for the Civil Service Board as follows: Robyn Grant — Avery, Brenner, Dixon, Duffield, Herdman, Muldoon, O'Neill Howard Herzog — Avery, Brenner, Dixon, Duffield, Herdman, Muldoon, O'Neill City Clerk Brown announced that Robyn Grant and Howard Herzog were reappointed to the Civil Service Board for four-year terms. City Clerk Brown read the ballot votes for the Harbor Commission as follows: Kevin Kramer — Brenner Gary Williams — Avery, Dixon, Duffield, Herdman, Muldoon, O'Neill City Clerk Brown announced that Gary Williams was appointed to the Harbor Commission for a four-year term. Volume 64 - Page 431 City of Newport Beach Regular Meeting June 9, 2020 City Clerk Brown read the ballot votes for the Parks, Beaches and Recreation Commission as follows: David Granoff —Avery, Brenner, Dixon, Duffield, Herdman, Muldoon, O'Neill City Clerk Brown announced that David Granoff was reappointed to the Parks, Beaches and Recreation Commission for a four-year term. City Clerk Brown read the ballot votes for the Planning Commission as follows: Curtis Ellmore — Avery, Duffield, Muldoon, O'Neill Debbie Stevens — Brenner, Dixon, Herdman Erik Weigand — Avery, Brenner, Dixon, Duffield, Herdman, Muldoon, O'Neill City Clerk Brown announced that Curtis Ellmore and Erik Weigand were reappointed to the Planning Commission for four-year terms. 17. Advanced (Water) Meter Infrastructure Project, Approval of Installation Agreement (Phase 2), Project 19W12 [381100-20191 Council Member Muldoon recused himself due to previous business interest conflicts In response to Council Member Dixon's questions, Utilities Director Vukojevic reported the technology will provide a daily signal of usage, the customer will have access to the information, staff has tested the meters and integrated the data with the Information Technology (IT) System, added that the next step is full implementation with customer access and billing information with a completion time of about 2% years. Council Member Dixon commended Utilities staff for bringing this project forward and securing a grant. In response to Mayor Pro Tem Avery's question, Utilities Director Vukojevic explained the process for changing water meters. Utilities Director Vukojevic recognized Utilities Superintendents Catron and Parks, who have been working on the project for many years. Motion by Mayor O'Neill, seconded bMayor Pro Tem Avery, to a) find this work exempt from the California Environmental Quality Act (CEQA) pursuant to Section15301, Class 1 (Existing Facilities) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3; b) approve a Purchase and Installation Agreement (C-8582-2) for the Advanced (Water) Meter Infrastructure Project with Mueller LLC for $8,150,000; c) approve a Grant Assistance Agreement (C-8643-1) with the U.S. Bureau of Reclamation in the amount of $1,499,000; and d) authorize the Mayor and City Clerk to execute the Agreements. With Council Member Muldoon recusing himself, the motion carried 6-0. 18. Novel Coronavirus (COVID-19) Update [100-20191 City Manager Leung utilized a presentation to discuss recent State actions, anticipated new County approvals by this Friday, and new State guidelines for the next phase. Recreation and Senior Services Director Detweiler continued the presentation, stating staff is awaiting direction to implement summer programs and reviewing Federal and State guidance for recreation programs. She also discussed their focus on implementing outdoor camps and amenity openings, highlighted facility closures, and reviewed ongoing work at the OASIS Senior Center. Volume 64 - Page 432 City of Newport Beach Regular Meeting June 9, 2020 In response to Mayor O'Neill's question, Recreation and Senior Services Director Detweiler indicated that playgrounds may be opened in Phase 3. City Manager Leung added that the State is aware of the desire to reopen playgrounds and has stated playgrounds and organized sports may open in the near future. Council Member Brenner believed citizens always appreciate amenities, but now they will appreciate them more. In response to her question, City Manager Leung indicated libraries are not in the current guidance yet because libraries tend to be gathering places. Council Member Dixon commended staff for their flexibility and innovative programs. In response to her question, Recreation and Senior Services Director Detweiler noted guidance for senior centers is very clear and staff is offering online programs to keep seniors engaged. In response to Mayor Pro Tem Avery's questions, Recreation and Senior Services Director Detweiler reported that staff has been inundated with calls, seen the increased use of parks, and she is thankful the parks have stayed open. She indicated that staff hopes to open the Marina Park sailing bay soon for rentals and to start some family or single sailboat classes. In response to Council Member Herdman's questions, Recreation and Senior Services Director Detweiler. advised that staff is currently taking registrations, but not collecting fees, for summer programs and added that participants can sign-up to be on a waitlist. Fire Chief Boyles shared COVID-19 statistics, indicated call volumes are rising, shared plans for five- week and seven -week Junior Lifeguard programs at the Newport Pier, Balboa Pier, and Marina Park for all age groups, thanked Recreation staff for agreeing to share Marina Park, indicated the cost will increase due to hiring more Lifeguard staff and purchasing more equipment, thanked Lifeguard staff, and advised that staff received State approval and is awaiting County approval. Lifeguard Chief Halphide reviewed modifications to the Junior Lifeguard program and reported that, with County approval, registration could begin as early as next Monday. Council Member Muldoon thanked Chief Halphide for starting work on the Junior Lifeguard program as soon as Council indicated its interest, suggested offering equipment for parents to purchase during registration and holding a fundraising event. He believed there would be overwhelming support and the new protocols would mitigate the risk of COVID-19 exposure. Chief Halphide indicated staff is discussing options for raising funds. Council Member Brenner noted Council received 1,100 emails about the Junior Lifeguard program, appreciated the community's passion, and believed the deciding factor was the ability to offer a safe program. Deputy City Manager Finnigan presented an update for the Small Business Relief Grant Program, stating guidelines are available at newportbeachca.govlbusinessgrants, a webinar is scheduled for June 11th at 10:00 a.m., and the application window opens June 12th and closes June 16th. Mayor O'Neill discussed high hospitalization and ICU admissions compared to last month, the need to continue to take the pandemic seriously, and expressed appreciation for the efforts of the Fire Department, Hoag Hospital and skilled nursing facilities. Jim Mosher thanked Mayor O'Neill for the note of caution, inquired about the number of Orange County COVID-19 deaths that were Newport Beach residents, asked if all 18,000 business license holders have been informed about the Small Business Relief Grant Program, and asked if the start of the regular meeting at an unusual hour is related to COVID-19 and when the start time will return to 7:00 p.m. Mayor O'Neill advised that the County has not released a breakdown by city of COVID-19 deaths Volume 64 - Page 433 City of Newport Beach Regular Meeting June 9, 2020 XIX. MOTION FOR RECONSIDERATION - None XX. ADJOURNMENT - 8:58 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 7, 2020, at 4:00 p.m. Aayu, �� , �g� Leilani I. Brown City Clerk Will O'Neill Mayor Volume 64 - Page 434