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HomeMy WebLinkAbout01 - MinutesFebruary 8, 2022 CITY OF NEWPORT BEACH Agenda Item No. 1 City Council Meeting Minutes Study Session and Regular Meeting January 25, 2022 I. ROLL CALL - 4:00 p.m. Present: Mayor Kevin Muldoon, Mayor Pro Tem Noah Blom, Council Member Brad Avery, Council Member Joy Brenner, Council Member Diane Dixon, Council Member Duffy Duffield, Council Member Will O'Neill II. CURRENT BUSINESS SS1. Clarification of Items on the Consent Calendar — None SS2. Orange County Housing Finance Trust Update — Continued to a future Study Session SS3. Housing Element Update Community Development Director Jurjis and Deputy Community Development Director Campbell utilized a presentation to discuss the Regional Housing Needs Assessment (RHNA) adjustments throughout the City, the January 1), 2022 California Department of Housing and Community Development (HCD) comment letter, Banning Ranch issues, certification status of the Housing Element in the Southern Californssociation of Governments (SCAG) region and Orange County, required RHNA adjustments, ocizs area changes, and requested direction from Council. In response to Council Member Dixo 's questions, lmunity Development Director Jurjis reported that HCD will not allocate credit for Banning Ranch, shared sentiments of other Orange County cities, and noted the October 712 deadline for implementing the adopted Housing Element should the City become uncertified according to Assembly Bill (AB) 1398. In response to Mayor Muldoon's questions, Community Development Director Jurjis detailed the steps, fines, and legal options by HC1,b if the City becomes noncompliant. Council Me i O'Neill acknowl dged the struggle and effort for cities and advocated to include Banning R the HousingZlement Update as an option and defensive posture. Council Member Dixon indicated that staff contacted elected California Assembly representatives to ask fo their advocacy; however, there was a lack of support for the City. Council Member Avery noted the potential minimal impact to public enjoyment of the Banning Ranch grounds with thoughtful housing placement and space allotment. In response to his questions, Deputy Community Development Director Campbell confirmed the Banning Ranch acreage and noted the acreage percentage for inclusion in the Housing Element. Council Member Brenner commented on the potential impact to quality of life by removing housing units in Banning Ranch and adding units to other parts of the City to make up for the loss. Charles Klobe indicated that the owner of Banning Ranch is not interested in remediating the property for residential development, suggested spreading around the housing units and adding a 20% inclusionary to avoid fines, and questioned potential lawsuits from advocacy groups. Volume 65 - Page 229 City of Newport Beach City Council Meeting January 25, 2022 Nancy Scarbrough suggested an alternative plan for an inclusionary requirement by using surplus funds to loan Accessory Dwelling Unit (ADU) owners to bring units up to code, thus reducing the number of affordable housing units in other parts of the City. Jim Mosher noted the number of deficiencies in the first and second HCD letters, predicted the upcoming Housing Element Update will not be compliant with State law, and questioned action steps by staff to comply with the public participation requirement and General Plan Update. Debbie Stevens expressed her disappointment in the Housing Element Update and questioned the approach staff is taking to understand the details of the HCD comment letter. Community Development Director Jurjis and Deputy Community Development Director Campbell related meetings with HCD and staff to gain greater clarification of Housing Element requirements, inconsistent instruction of laws from HCD, and lawsuit exposure. In response to Council Member Dixon's questions, Community Development Director Jurjis clarified staff's request for direction on whether to include or remove Banning Ranch in the Housing Element Update and disburse affordable units JQ other areas of the City. Council Member Dixon recounted the 2016 California Coastal omdAission (CCC) decision that denied Banning Ranch property owners the ability to develop e property while preserving 90 percent for open space. Mayor Pro Tem Blom acknowledged and commended the time, energy, and money contributed by the Council, public, and staff towards this project and discussed possible future opportunities with Banning Ranch. In response to Council Member Brenner's question, Deputy Community Development Director Campbell confirmed that the outreach efforts by th7eFCity to the homeless community are included in the low affordable housing requirement. During a straw vote to maintain Banning Ranch in the Housing Element Update inventory and not count it towards RHNA, there was a vote of 6-1 with Council Member Brenner voting no; however, during the Closed Session Report, it was noted that she changed her vgalWffirmative._ III. PUBLIC COMME� ON AGENDA AND NON -AGENDA ITEMS -None City Attorney Harp rannounced that the City Council would adjourn to Closed Session to discuss the items listed in the Closed Session agenda and read the titles. Council Member Brennerrecused herself from Closed Session Item IV.A due to her American Legion Auxiliary membership and potential bias. IV. CLOSED SESSION A. CONFERENCE WITH REAL PROPERTY NEGOTIATORS EXISTING LITIGATION (Government Code § 54956.8): 1 matter Property: American Legion, 215 15th Street, Newport Beach, CA 92663; Assessor Parcel No. 047-222- 11. Agency Negotiator: Seimone Jurjis, Community Development Director. Negotiating Parties: Evin Planto on behalf of the American Legion. Volume 65 - Page 230 City of Newport Beach City Council Meeting January 25, 2022 Under Negotiation: Instructions to the Agency's Negotiator will concern the lease price and terms of payment. B. CONFERENCE WITH LABOR NEGOTIATORS (Government Code § 54957.6): 1 matter Agency Designated Representatives: Grace K. Leung, City Manager and Barbara Salvini, Human Resources Director, Negotiators. Employee Organizations: Part Time Employees Association of Newport Beach (PTEANB), and Association of Newport Beach Ocean Lifeguards (ANBOL). V. RECESSED — 4:34 p.m. VI. RECONVENED AT 5:33 P.M. FOR REGULAR MEETING VII. ROLL CALL Present: Mayor Kevin Muldoon, Mayor Pro Ten Council Member Joy Brenner, Council Mem Council Member Will O'Neill VIII. CLOSED SESSION REPORT I� cil Member Brad Avery, icil Member Duffy Duffield, City Attorney Harp reported that, during Closed Session, Council Mer Brenner changed her vote on Item SS3 (Housing Element Update) to affirmative, and with no objection from the City Council, the vote moved forward with a unanimous vote to include Banning Ranch in the Housing Element Update but not count it towards RHNA. INVOCATION — Debbie Meline, Director of the Center for Jewish Life at the Merage JCC, Irvine X. PLEDGE OF ALLEGIANCE ouncil Member Dixon XI. NOTICE TO THE PU16LIC XII. CITY COUNCIL ANNOUNCEMENTS AND ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES Council Member O'Neill: r • Attended the Friends of the Newport Beach Animal Shelter (FONBAS) Groundbreaking Ceremony, a Homeless Ad Hoc Committee meeting, a Corona del Mar Residents Association (CdMRA) meeting, and hosted a Girl Scout Troop in the Council Chambers • Announced being named the Chair of the San Joaquin Hills Transportation Corridor Agencies Board • Utilized a slide to announce a blood donation drive and the American Legion blood drive (redcrossblood.org) Council Member Duffield: • Announced that the City received $8.3 million from the Federal government to finish and complete the Harbor dredging and thanked Council Member Avery, past Council Members, staff, California elected officials, and local representatives for their contributions over the last 20 years Volume 65 - Page 231 City of Newport Beach City Council Meeting January 25, 2022 Council Member Dixon: • Attended the FONBAS Groundbreaking Ceremony and acknowledged the public-private partnership • Announced the Aviation Committee meeting cancellation in January, with the next meeting scheduled for February 28, 2022 • Utilized a slide to provide an update on the State mandated refuse program and contract, green -top carts for organic waste, recycling guides, trash and recycling schedule changes, and noted the websites newportbeachca.gov/recycle and newportbeachca.gov/findmycollectionday Council Member Brenner: • Announced the availability of compostable biodegradable bags at Ace Crown Hardware in Corona del Mar, attended the CdMRA meeting that discussed and voted on redistricting, announced the Pacific Coast Highway (PCH) and Marguerite Road closure for construction, noted public emails received regarding homelessness in the City, acknowledged the Homeless Ad Hoc Committee meeting and efforts, and referenced Tara Finnigan's December 2021 report regarding the City's efforts to support the homeless community • Announced the Point In Time Count for mapping homelessness on February 22, 2022 by CityNet Council Member Avery: I • Shared his experience with starting to use a food waste bucket prior to the official start date • Attended the Finance Committee meeting, a Orange County Sanitation District Board meeting, and the Homeless Ad Hoc Committee meeting • Acknowledged the efforts of the City Council a d staff in securing Federal funding for harbor dredging and noted the positive impact it will addWthe Harbor experience Mayor Pro Tem Blom: 19911b, • Reported on the ferry closing and undergrounding proj1W Balboa Island, and commended the Public Works Department • Attended the Finance Committee meeting and recogAd how fortunate the City is to have their support Mayor Muldoon: 14, • Extended congratulations to para Finnigan Qn her promotion as the Assistant City Manager • Utilized a slide to aounce the City Council Planning Session on January 29, 2022 from 9:00 a.m. to noon in the CoiTncil `ambers and noted the meeting can be viewed at newportbeachca.gov/ nbtvlive _ • Noted the website www.everyon countsoc.org/about for information about the Point In Time Count • Attended the FONBAS Grog} breaking Ceremony XIII. MATTERS WHICH COUNCIL MEMBERS HAVE ASKED TO BE PLACED ON A FUTURE AGENDA • Consider extension of the revocable license agreement dated October 1, 2014, between the City of Newport Beach and Kobe, Inc., which was later assigned to Pacifica Christian High School, for the use of City property located at 1499 Monrovia Avenue [Council Member O'Neill] The City Council unanimously concurred to bring the item back at a future meeting. XIV. PUBLIC COMMENTS ON CONSENT CALENDAR - None XV. CONSENT CALENDAR READING OF MINUTES AND ORDINANCES Volume 65 - Page 232 City of Newport Beach City Council Meeting January 25, 2022 1. Minutes for the January 11, 2022 City Council Meeting [100-20211 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. ORDINANCES FOR ADOPTION 3. Ordinance No. 2022-1: Amending the Newport Beach Municipal Code for Lido Isle Hedge Heights (PA2019-132) [100-20211 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) Conduct second reading and adopt Ordinance No. 2022-1, An Ordinance of the City Council of the City of Newport Beach, California, Adopting Local Coastal Program Amendment No. LC2019-002 to Amend Title 21 (Local Coastal Program Implementation Plan) of the City of Newport Beach Municipal Code Related to Hedge Heights i cont Setbacks Abutting Stradas in Lido Isle (PA2019-132). Council Member Dixon recused herself from Ite:Adu a to real property interest conflicts. 4. Ordinance Nos. 2022-2 and 2022-3: Amending the New 'ort Beach Municipal Code Related to Cottage Preservation (PA2019-181) [100-204]] W a) Find this action exempt from the California Environmental Quality Act (CEQA) pursuant to Section 21065 of CEQA and State CEQA Guidelines Sections 15060(c)(2), 15060(c)(3), and 15378. The proposed action is also exempt pursuanj to State CEQA Guidelines Section 15061(b)(3) because it has no potentialito have a significrant effect on the environment; b) Conduct second reading and adopt Ordinance No. 2022-2, An Ordinance of the City Council of the City of Newport Beach, California, Adopting Revisions to Zoning Code Amendment No. CA2019-006 Amending Title 20 (Planning and Zoning) of the City of Newport Beach Municipal Code Related to Cottage Preservation for Consistency with the California Coastal Commission's Modifications (PA2019-18 p-' and c) Conduct second reading and adopt Ordinance No. 2022-3, An Ordinance of the City Council of the City of Newport Beach, California, Accepting California Coastal Commission's Suggested Modifications and Adopting Local Coastal Program Amendment No. LC2019-004 to Amend Title 21 (Local Coastal Program Implementation Plan) of the City of Newport Beach Municipal Code Related to�Cott&e Preservation (PA2019-181). Council Member Brenner recused herself from Item 4 due to real property interest conflicts. 1W ts�'DLC'T171Cl/I,Y,CI�/ s I I],yll[I� 5. Resolution No. 2022-8: Adopting a Memorandum of Understanding with the Newport Beach Employees League (LEAGUE) and Associated Salary Schedule (C-2065) [38/100- 2021] 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. 2022-8, A Resolution of the City Council of the City of Newport Beach, California, Adopting a Memorandum of Understanding Between the City of Newport Beach and the Newport Beach Employees League and Associated Salary Schedule; and c) Approve Budget Amendment No. 22-038 appropriating $257,926 from unappropriated fund balances to various salary and benefit accounts to implement the terms of the MOU for the Volume 65 - Page 233 City of Newport Beach City Council Meeting January 25, 2022 remainder of FY 2021-22, representing the first six months of the four-year period covered by the MOU. MISCELLANEOUS 6. Grants and Donations Report for the Quarter Ending December 31, 2021 [100-2021] a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; and b) Receive and file. 7. Financial Statement Audit Results and Related Communication [100-2021] a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; and b) Receive and file. 8. Pulled from the Consent Calendar Motion by Mayor Pro Tem Blom seconded by Mayor M to approve the Consent Calendar, except Item 8; and noting the recusal by Council Memb o Item 3, the recusal by Council Member Brenner to Item 4, and the amendments to Ite The motion carried unanimously. XVI. ITEM REMOVED FROM THE CONSENT CALENDAR 8. Dredging Disposal Alternatives Analysis by a Private Party: Harbor Commission Recommendation [100-2021] W Public Works Administrative Manager Millen, summarized the Dredging Disposal Alternative Analysis by a private party (Team Palmer) starting with the May 25, 2021 discussion of the Lower Newport Bay Confined Aquatic Disposal (CAD) Construction Project where the City Council certified and adoptpd Tie Environmental Impact Report (EIR) and Mitigation, Monitoring and Reporting Progratemade facts and findings and approved construction of the CAD site, directed the Harbor Com#nission to continue the exploration of a privately funded option or other alternatives within 90 days and return to the Cif' Council with a recommendation. He reported that the Harbor Commission Subcommittee helped facilitate dialog between Team Palmer and the City, who requested more time followed by a discussion at the October 13, 2021 Harbor Commission meeting and a tertiary discussion for planning and permitting input from Deputy Community Development Director Campbell, ending with the Harbor Commission voting 7-0 to disband the subcommittee and recommend the City Council to utilize the CAD as the most viable, cost effective solution with the most sufficient timeline and not consider an alternative analysis. Palmer Luckey, Team Palmer representative, questioned and clarified the previously shared plan details, requested additional time for an independent third party to review the Team Palmer proposal at his expense, suggested delaying the approval of the recommendation by the Harbor Commission, and asked the City Council to consider his analysis as a backup. In response to Council Member Dixon's questions, Mr. Luckey clarified his request for an independent and comparative analysis of the Team Palmer proposal and deficiency remedies, and his interest in not delaying the dredging timeline. Public Works Director Webb and Public Works Administrative Manager Miller utilized a presentation to share the current dredge project and 2021 dredge, the various options Team Palmer Volume 65 - Page 234 City of Newport Beach City Council Meeting January 25, 2022 suggested and issues with the sites as it pertains to grading plans, the ability to receive permits, project timing, U.S. Environmental Protection Agency (EPA) guidelines for sediment disposal, and future costs related to sand mining off the ocean floor. In response to Mayor Muldoon's question, Public Works Director Webb and Public Works Administrative Manager Miller indicated that 250,000 to 260,000 cubic yards of the harbor bottom material is recoverable and can be used for sand replenishment near the shore zone, along the ocean beaches. Mayor Muldoon shared his reasons for allowing the hearing to take place, including the lack of clarity from the consultant and notice to Team Palmer, his interest in gaining a rebuttal from the consultant, and the opportunity for two options. Mr. Luckey shared mitigation alternatives to preclude plant growth, ideas for Castaways Park space, and clarified the sand removal plan (Potential Area No. 1). In response to Council Member Dixon's question, Mr. Luckey indicated that the high-level grading plan slide has been slightly modified from his original *Meer nd offered to send a watercolor rendering of the grading plan to show land usability. Brent Mardian, Team Palmer consultant, clarified tha-level grading slide is a Team Palmer conceptual drawing and, in response to C�lnciDixon's question, Mr. Mardian expressed the opinion that the material can beVp ed at third site but more time is needed to refine the idea, and clarified the time exte request, challenges related to sediment management, Team Palmer's intentions, timeline discrepancies, and first CEQA public scoping meeting objectives and decision making options. In response to Mayor Muldoon's question, Mr. Luckey r6ported that Team Palmer considered 11 potential sites, of which eight were site surveyed, three were further considered, and Lower Castaways was found most sensible. Mayor Pro Tem Blom expressed concern thVnisgruntled homeowners living near a CAD could result in potential project delays. In response to C4'61 Member Duffield's question, Public Works Administrative Manager Miller confirmed thereAvould be 106,000 Ocuic yards of disposal from the Federal channel and 50,000 cubic yards more from residential a�dy disposal, Team Palmer's proposal would only accommodate 100,000 cubic yard. Shana Conzelman expressed her concern for the Harbor's water quality, dismay in the CAD location, and referenced a compfflwltive site in Minnesota. Harbor Commission Chair Kenney noted the study conducted by the Harbor Commission, the relationship between the City and Federal government, the dredging window of opportunity, noted the EIR is certified, the ramifications of a delays with a site change, private homeowner provisions for cleaning under docks, time and analysis given to Team Palmer, and recommended that Council move forward with the CAD. Harbor Commission Vice Chair Beer noted his role as a conduit between Team Palmer and staff, three key elements needing to be satisfied, cost saving opportunities, time factor threats to EPA concessions, material size needs and shortages, the unlikely ability for Team Palmer to receive permits, and the history of the project since inception. Volume 65 - Page 235 City of Newport Beach City Council Meeting January 25, 2022 Mr. Mardian clarified the stipulations for the 50,000 cubic yard shortage of disposal, Harbor Area Management Plan Water Quality Impact Models, CEQA water quality analysis sensitivity and requirements, the importance of an alternate plan, and the permit process. Jason Picken stated there is dismay from nearby residents, recounted the oil spill incident, emphasized the impact of water contamination in the Harbor, and questioned the alternative plan considerations. In response to Mayor Muldoon's questions, Public Works Administrative Manager Miller reported that the Water Quality Board has deemed the City's application complete and is under consideration for grant permitting, and shared the next steps. Mayor Muldoon supported looking at a back-up option, shared his concern for water quality and human exposure, extended his appreciation for Team Palmer's efforts, and suggested a third party review their plan, and a parallel path be considered. Motion by Mayor Muldoon, 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 the action w* not result in a physical change to the environment, directly or indirectly; b) receive and file the Harbor Commission's recommendations to City Council that the Confined Aquatic Disposal Facility for dredged materials in Newport Harbor is the most viable and cost-effective solution with the most sufficient timeline for completing the project and not to consider thee`alternatives presented by Team Palmer any further; and c) direct staff to work with Team Pal er to furtlkr evaluate a possible Lower Castaway sediment disposal site on a parallel path as a poss�lq back-up option, but does not in any way slow down the permitting of the current approved Confined Aquatic Disposal Facility for the Lower Bay dredging project. In response to Council Member Dixon's questions, Public*orks Director Webb clarified that the City Council approved the EIR, regulatory agencies have reviewed the environmental document and the CAD and added comments, indicated a low risk for permit acceptance for Team Palmer's proposal, noted the CAD as .a good dredging s lution as per the California Coastal Commission (CCC), confirmed the material is documented a4not toxic, and reported extensive public outreach. Council Member Dixon requested landscRping improvements, so the CAD area matches the greenery of Castawlays Park, expressed her concern for the CAD proximity to residential properties, and asked Mr. ,,Palmer to consider site viability and a better option than Castaways Park. In response to Council Member Dixon's questions, Public Works Director Webb and Public Works Administrative MNager Miller reported meetings with the EPA to clarify ocean material limits, clarified Council's vote as a secondary back-up, noted potential confusion by regulatory agencies, and highlighted the Sediment Characterization Study timeline, money timelines, policy questions, permitting, alternative tions, and CAD feasibility. Mayor Muldoon clarified his motion for staff to continue the current process with the regulatory agencies for permit approval and obtain a parallel path as an alternative. Council Member Duffield cautioned on the impacts of using the word toxic since the current material has been identified and tested, expressed the opinion that the alternative plan is not to dredge, and emphasized that the CAD is the opportunity to return the Harbor water flow to what it was in 1938 before the San Diego Creek brought pollutants into the Harbor. Council Member Dixon and Mayor Muldoon emphasized that they are not seeking to delay dredging and Mayor Muldoon further clarified his position on toxicity, dredging, alternative plans, and continued progress by staff. Volume 65 - Page 236 City of Newport Beach City Council Meeting January 25, 2022 Council Member Avery noted the importance of exploring alternatives, but not at the cost of losing the current plan or timeline, emphasized that the Lower Castaways is an iconic site, and expressed his support for a solution that does not produce a CAD, recognized the viability of no CAD, and acknowledged the current process and focus on long-term Harbor health. In response to Council Member Brenner's question, Public Works Director Webb and Public Works Administrative Manager Miller indicated that, without further calculations, it appears the material would fill up to the road level and then back up the slope of Lower Castaways, questioned if the City Council or regulatory agencies would agree to this plan or issue a permit, and reiterated the material amounts allowable by the Federal government to dump in the ocean water and estimated by the City, and concessions and appeal opportunities from the EPA. Mayor Muldoon concurred with Council Member Brenner that the CCC may be opposed to changing the appearance of the bluff, questioned space availability, and offered distribution alternatives. Council Member O'Neill concurred with Council Member Avery and thanked staff and Council Member Duffield for their time and effort in this project. In response to Council Member Dixon's questions, Public Worlds Administrative Manager Miller noted other California harbors who are seeking funding and struggling to manage dredged materials and sediment disposal. Council Member Dixon expressed concerns that the City Council does not want to risk losing funding and disrupt the timeline, and expressed her appreciation to staff, the community, and Harbor Commission for a thorough review analysis of the project. I W In response to Council Member Duffield's question, Public oddrks Administrative Manager Miller reported that Newport Harbor is the onl or awarded Federal funding for dredging this year throughout the State of California. Mayor Muldoon noted that no one on Coun has expressed opposition to dredging. Council Member Dixon anunced the r f Congresswoman Steel in the Federal funding approval. X With Council Member Duffield voting "no," the motion carried 6-1. Mayor Muldoon rveessed the meeting at 7.40 p.m. and reconvened the meeting at 7.48 p.m. XVII. PUBLIC COMMENTS ON NON -AGENDA ITEMS Dennis Bress reported the start of the John Wayne Airport (JWA) Fly Quiet Program and credited members of Council, staff, the Aviation Committee, and volunteers for their contributions, indicated the number of flights expected this year, discussed supporters and non -supporters of the American Rescue Plan, and expressed his expectations of elected officials. Susan Skinner read the press release issued by the Lincoln Club and asked Council to consider a no vote on the Elect Our Mayor ballot measure that is on the June 2022 ballot. Jim Mosher questioned the residential trash collection green cart distribution schedule, Standard Valet Service charges, three cart allotment per household or per lot, and recyclable sorting guidelines. In response to Council Member Brenner's questions, Public Works Director Webb clarified recycling cart allotment designations and the Standard Valet Service. Mayor Muldoon expressed his gratitude for the efforts of Congresswoman Steel, staff, and the City Council for securing the Federal funding for dredging in Newport Beach. Volume 65 - Page 237 City of Newport Beach City Council Meeting January 25, 2022 XVIII. CURRENT BUSINESS 9. Resolution No. 2022-2: Creating the General Plan Update Steering Committee (PA2017- 141) — continued from the January 11, 2022 City Council meeting [24/100-20211 Community Development Director Juris indicated that the General Plan Update Ad Hoc Committee has recommended a three-member General Plan Update Steering Committee be formed to establish the General Plan Update process and make recommendations to the City Council. Council Member Brenner relayed the intention for the Steering Committee and shared plans for additional opportunities for public service. Community Development Director Juris concurred and added examples of future community involvement. In response to Mayor Muldoon's request, Community Development Director Jurjis utilized a presentation to share the General Plan Update Committee hierarchy flow chart. Jim Mosher reviewed the function of the existing three-member Ad Hoc Committee of the City Council and questioned the function, selection process, and blic input of a new three-member General Plan Update Steering Committee. Motion by Mayor Pro Tem Blom, seconded by Cou ember 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 Guidelin s because this action will not result in a physical change to the environment, directly or indirectly;�fl b) adopt amended Resolution No. 2022-2, A Resolution of the City Council of the City of Newport Beach, California, Creating the General Plan Update Steering Committee (PA2017-141 Council Member Brenner questioned the selection process Mid expressed interest in members of the City Council to serve on the General Plan Update Steering Committee. Council Member O'Neill clarified the function of the General Plan Update Steering Committee and recommended moving forward with appointing three non -Council Members to the committee. Council Member B�ner requested reg updates from the committee. Council Membe Avery s eco having three residents with applicable backgrounds. Mayor Muldoon re mmende an amended motion to clarify Council Member participation. Council Member O'Neill offered a friendly amendment that the qualifications for the appointed General Plan Update Steering Committee members be a resident, registered voter, Mayor appointed, and not a current Council Member. Council Member Dixon shared her experience on the Library Lecture Hall Committee consisting of all residents and one Council Member, and suggested a Council Member be a non-voting member on the General Plan Update Steering Committee. In response to Council Member Dixon's suggestion, Council Member O'Neill stated that he does not recommend having a member of the City Council participate as a non-voting member, and clarified that members are not making policy, they are recommending to the City Council what the bigger body will look like and providing regular updates to the City Council. Council Member Dixon related the value that a Council Member and staff could provide by sharing informal guidance and then withdrew her suggestion. Council Member O'Neill agreed that having a Council Member participate is possible, but remained opposed to minimize potential bias. Volume 65 - Page 238 City of Newport Beach City Council Meeting January 25, 2022 In response to Council Member Brenner's request for regular updates to the City Council, Council Member O'Neill suggested a change to Section G (Purpose and Responsibility) to provide at least bi-monthly reports to the City Council. Mayor Muldoon clarified the friendly amended motion to exclude members of the City Council, include a minimum bi-monthly report to the City Council, and support the Mayor's right to appoint the members. The motion carried unanimously. 10. Ordinance No. 2022-4: Multiple Vessel Mooring System Clarifying Statements and Updates; and Resolution No. 2022-9: Multiple Vessel Mooring System Plans and Specifications [100-20211 Council Members Avery, Dixon and Duffield recused themselves due to their membership in the Newport Harbor Yacht Club. Public Works Administrative Manager Miller referenced the��evised ordinance that reflected a change in language from Harbor Department to Harbormaster aid utilized a presentation to review the Multiple Vessel Mooring System (MVMS), single point mooring fields at Balboa Yacht Club and Newport Harbor Yacht Club, and a MVMS depiction. ` Harbor Commission Vice Chair Beer clarified the solutioW to sAl boats with this resolution, proposal initiatives, yacht club consensus, and theiulti-tier approach. Public Works Administrative Manager Milfelaborated on the updates to the existing MVMS with the intent to develop review and approval process standards. Jim Mosher questioned the participation of City staff and Harbor Commission members with Newport Harbor Yacht Club membehips and the need for a Coastal Development Permit. Heidi Hall applauded the work of t Har Commission, questioned the intent of an update, requested the ordinance wotd' remain u On ed and suggested adding a moratorium until the q �g g � gg g work is completed Harbor Commission Vice Chair l31Wclarified the MVMS aspects of Title 17, indicated the current issues in the mooring fields, necessary improvements to increase navigation safety and space efficiency, plans to4ntroduce floats for a two-point MVMS for City -owned moorings, and outlined the plan steps. Heidi Hall explained hL'lobstacles and interest in obtaining a two -mooring permit as a lessee. Harbor Commission Vice Chair Beer noted the current space limitations at the mooring field rows and plans to increase capacity after the redesign. Mayor Muldoon acknowledged his understanding of why the Harbor Commission chose the Balboa Yacht Club and Newport Harbor Yacht Club for redesign. City Attorney Harp reiterated that an amended ordinance was circulated with minor modifications. Motion by Mayor Muldoon, seconded by Mayor Pro Tem Blom, to a) determine this action exempt from the California Environmental Quality Act ("CEQA") pursuant to Section 15301 (Existing Facilities) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3 because it will result in negligible or no expansion of existing use, and also determine this action is not subject to CEQA pursuant to Section 15060(c)(2) and 15060(c)(3) of the CEQA Volume 65 - Page 239 City of Newport Beach City Council Meeting January 25, 2022 Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3 because this action has no potential for resulting in physical change to the environment, directly or indirectly; b) waive full reading, direct the City Clerk to read by title only, introduce amended Ordinance No. 2022-4, An Ordinance of the City Council of the City of Newport Beach, California, Amending Section 17.01.030 and Section 17.60.040 of the Newport Beach Municipal Code to Delete Vessel Length Requirements and Clarify Approval Responsibility for the Multiple Vessel Mooring System and to Require Compliance with Applicable Plans and Specifications, and pass to second reading on February 8, 2022; and c) adopt Resolution No. 2022-9, A Resolution of the City Council of the City of Newport Beach, California, Amending the City of Newport Beach Design Criteria and Standard Drawings for Public Works Construction and the Waterfront Project Guidelines and Standards, Harbor Design Criteria, Commercial and Residential Facilities Related to Multiple Vessel Mooring Systems. With Council Members Avery, Dixon, and Duffield recusing themselves, the motion carried 4-0. 11. Resolution No. 2022-10: Adopting the 2022 Key and Management Compensation Plan for the Period January 1, 2022, through December 31, 2025, and Amending the City's Salary Schedule [100-2021] IN Human Resources Director Salvini summarized the terms and conditions of employment for 90 unrepresented employees, noted that the plan is not a contract nor is negotiated with the employees, and outlined the proposal inclusions QP a four-year term, wage adjustments of two percent each January, the one-time lump sum payment of Q,000 for covered employees, City -paid short-term and long-term disability benefits, and liecussed t e irriqiprnentation of a 401a plan. Motion by Mayor Pro Tem Blom, secodded 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 becausethis action will not result in a physical change to the environment, directly or indirectly; b) adopt Resolution No. 2022-10, A Resolution of the City Council of the City of Newport Beach, California, Adopting the 2022 Key and Management Compensation Plan, Which Shall be Effective from January 1, 2022, and Amending the City's Salary Schedule; c) approve Budget Amendment No. 22-037 appropriating $343,614 from unappropriated fund balances to various salary and bene it accounts to implement the terms of the Key and Management Comp nsation Plan fort ainder of FY 2021-22, representing the first six months of the four-year pe(od covered by the Plan; and d) approve and adopt the revisions to the Citywide salary schedule s reflected in the 2022 Key and Management Compensation Plan. The motion carr d unanimously. 12. Third Amended and Restated Employment Agreement for City Manager (C-8568-4) [38/100-2021] City Manager Leung recused herself due to the potential financial interest conflicts. Human Resources Director Salvini summarized the provisions of the agreement to include a five- year term ending December 30, 2026, a five percent merit adjustment upon the contract effective date, cost of living adjustments tied to those received by executive management members in the Key and Management Compensation Plan group beginning in January 2023 and each January thereafter, 2.5 percent performance pay contingent on satisfactory performance reviews, implementation of a deferred compensation account and 401a account with annual City contributions on the effective date of the agreement, the proposed adjustment for flex leave accrual rate, and a severance agreement to provide a cash settlement equal to the monthly salary multiplied by the number of months remaining on the unexpired term of the employment agreement, which is subject to an 18 month cap. Volume 65 - Page 240 City of Newport Beach City Council Meeting January 25, 2022 Jim Mosher questioned the transparency of the staff report for public review, renewal terms, and severance pay structure. Mayor Pro Tem Blom commended staff for their work and recognized City management as the best, reported midline compensation packages, relayed Council's interest in retaining top talent while being fiscally conservative, and noted benefits to offering a severance without cause and that changes to the employment agreement will help accommodate legal requirements. Motion by Council Member Avery, 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 authorize the Mayor to execute a Third Amended and Restated Employment Agreement between the City of Newport Beach and City Manager Grace K. Leung, subject to the terms and conditions approved by the City Council; and c) approve Budget Amendment No. 22-039 appropriating $12,547 from unappropriated General Fund balance to various salary and benefit accounts to implement the terms of the Agreement for the remainder of FY 2021-22 (January 1, 2022 through June 30, 2022). Mayor Muldoon commented on the commendable job of City ager Leung and indicated that his "no" vote is based on small deal points. With Mayor Muldoon voting "no," the motion d 6 - XIX. MOTION FOR RECONSIDERATION - None XX. ADJOURNMENT - 8:47 p.m. The agenda was posted on the City's webl;ite and on the City Hall electronic bulletin board located in the entrance of the City Council Chambers at 100 Civic Center Drive on January 20, 2022, at 4:00 p.m. ,gnh, Leilani I. Brown City Clerk Kevin Muldoon Mayor Volume 65 - Page 241