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Home My WebLink About01 - Minutes - AmendedFebruary 22, 2022 Agenda Item No. 1 CITY OF NEWPORT BEACH City Council Minutes Planning Session (Special Meeting) January 29, 2022 I. Call the Meetine to Order - 9:00 a.m. Roll Call: 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 Invocation - Council Member O'Neill Pledge of Allegiance - Council Member Brenner II. Public Comments on Non -Agenda Items Jim Mosher reminded Council that they voted to place a ballot measure on the June 2022 ballot and noted that there is still time to place a ballot measure on the November 2022 ballot to conduct by -district elections with instant runoff, ranked -choice voting. H lso referenced a Stu News article about the Planning Session agenda and noted that conducting tlsvnvocation and pledge of allegiance at this type of meeting has only occurred since 2017 and discussed why he feels the invocation should be eliminated. III. Update on Financial Status City Manager Leung reported that the City has a strong financial planning process which has held well during both good and tough times, and noted that today is an opportunity to look at areas that allow the City to continue building its strong financial foundation. Ak Finance Director Catlett utilized a entation to provide an update regarding FY 2021-22 General Fund revenues and expenditures, uss the budget surplus, review the FY 2022-23 preliminary revenue outlook, and review the top ree revenue source projections for FY 2022-23: property tax, sales tax, and Transient Occupancy Tax (TOT). IV. Budget Developmentloueratine Budget Operating Budget Finance Director Catlett utilized a presentation to discuss the budget process timeline, public review of the budget, and operating budget pressures. Pension Funding Update Finance Director Catlett utilized a presentation to report on the current unfunded liability paydown strategy, the roll-fr-orward of 2020 valuations to June 30, 2021, the impact of investment returns and additional payments, and staff pension funding recommendations. In response to Council questions, Finance Director Catlett indicated that the target paydown will occur in seven years and the City will have a zero balance, which has not occurred since 2005, confirmed the City currently pays at least $80 million annually to CaIPERS, and commended the City on its strong financial shape. Volume 65 - Page 242 City of Newport Beach Planning Session (Special Meeting) January 2949, 2022 Assistant City Manager Finnigan continued the presentation to review the proposed $2.76 million budget associated with homeless services and initiatives. Council Member O'Neill pointed out that, just afew years ago, the City did not have any of these services and programs, but residents are feeling they are not seeing a difference, noted the City has between 20 to 90 homeless people, depending on the season, but Los Angeles County has about 80,000, which is almost the City's population, emphasized this is a regional issue, assured everyone that the City cannot tolerate people living on the streets permanently, expressed concern that tents are a sign of permanence, and requested that people utilize the City options and opportunities to give since the City has access to resources. In response to Council Member Dixon's question, Homeless Liaison Basmaciyan discussed housing vouchers and City Manager Leung reported that the City has not had the interest from motel owners to be purchased by the City. Council Member Brenner agreed that this topic can be discussed for days, but pertinent to today's discussion, is that the residents are saying to spend the money needed to take care of this problem and suggested that a public/private partnership develop to assist the City in finding land to build permanent supportive housing. City Manager Leung reported that affordable housing developers have been looking for sites for the past 1.5 years, but it has been a challenge. Council Member Dixon suggested looking at unincorporated areas in the County. - Staffing City Manager Leung utilized a presentation to discuss st re ention and managing workload demands. Council Member O'Neill noted that, just 18 months ago City had hiring freezes, deferred projects, and was unsure if it could make its unfunded liability payments; however, in light of the current budget situation, he stated that now is the timeth7e`City has the ability to invest in the future. He pointed out that, when the unfunded liability paymeift is exhausted and the balance is zero, there will be about $40 million annually that will be freed up for future Councils to allocate. Mayor Muldoon thanked past aril present Finance Committee members. Jim Mosher questioned whether the Ad Hoc Committee on Homeless Task Force should be sunsetted or turned into a standing committee that holds public meetings, stated that development agreement funds are not intended to be gifts for existing residents but are supposed to be used to assist with the needs created by the new development, indicated that the Water Master Plan and Wastewater Master Plan receive less attention than the other master plans, and discussed the articles in Stu News regarding the changes to the Newport Beach Marriott Hotel and Spa (soon to become VEA Newport Beach), noting it is within the Coastal Zone and the City is responsibileity for obtaining a Coastal Development Permit. Discussion ensued by and between Mayor Muldoon and City Attorney Harp regarding the shelter, enforcement of the anti -camping ordinance, and when it would be appropriate to sunset the Ad Hoc Committee on Homeless Task Force. City Attorney Harp added that he will look into whether the committee has completed all its tasks. V. Budeet Development - Capital Improvement Program WIP) City Attorney Harp announced that Council Member Brenner would be recusing herself during discussions relative to the Storm Drain System Project due to real property interest conflicts; Mayor Pro Tem Blom would be recusing himself during discussions relative to the Balboa Island Drainage System Project due to real property interest conflicts, and Mayor Muldoon would be recusing himself during discussions relative to the Boys and Girls Club Project out of an abundance of caution due to real property interest conflicts, and the Sunset View Park Pedestrian Bridge Project, the Fire Station No. 2 Project, and any streetlight and traffic light project due to potential business interest conflicts. Volume 65 - Page 244 City of Newport Beach Planning Session (Special Meeting) January 2949, 2022 In response to Council Member Brenner's questions, City Manager Leung reported that the City currently set aside $1 million of General Fund money toward homeless issues, Council previously directed staff to look at using development agreement funds for Regional Housing Needs Assessment (RHNA) infrastructure needs but a study will be coming back to Council, indicated staff needs direction on how to appropriate the surplus funds for the coming budget, and reviewed the purpose of the Water and Wastewater Fund, but stated a sewer rate adjustment may be needed. Council Member Dixon expressed support for the projects on the $15.5 million neighborhood enhancement and CIP list, and suggested creating an incentive program for residents to build Accessory Dwelling Units (ADUs) or a program to offset the permit fees, which would also assist with affordable housing. Community Development Director Jurjis reported that the City Council already approved waiving all permit fees for ADUs, indicated that staff is working on updating the ADU website and standard plans, stated they are looking into some type of finance program or loan program, but need more information or direction from Council, and indicated they can look at whether other agencies have loan programs. Council Member Brenner asked that staff also look at ways to incentivize residents to make existing ADUs conforming. Nancy Scarbrough indicated that she previously suggested iden non -conforming ADUs and creating a loan program which will be paid back to the City when th is paid off or transferred. r-- Charles Klobe stated that he is not a proponent of sea land and suggested that the City lease the land instead. Martin Colver provided a handout and requested that Council consider extending the bike path that ends at 36th Street so bikers are not riding behindI n Seashore Drive. Paul Watkins stated his support for the Balboa Librar RR�and Fire Station replacement projects, as well as the Library Lecture Hall project; however, he is not in favor of extending the bike path and provided the background relative to this suggestion. Without objection, Public Works Director Webb received confirmation for the following: • Having the Finance Committee conduct the initial review of the Balboa Yacht Basin project • Proceeding with developing a ectric vehicle policy • Including the Balboa Librarl and Fire Station replacement projects in the budget Unanimous straw votes were relived for the following: • Support for the $15.5 million project list • Using the ARPA funds toward the Library Lecture Hall and Junior Lifeguard Building projects • Having a Council subcommittee look at purchasing land for the future Police Department headquarters VI. Adiournment - 11:53 a.m. The special meeting agenda was posted on the City's website and on the City Hall electronic bulletin board located in the entrance of the City Council Chambers at 100 Civic Center Drive on January 26, 2022 at 11:30 a.m. Leilani I. Brown City Clerk Kevin Muldoon Mayor Volume 65 - Page 246 City of Newport Beach City Council Meeting February 8, 2022 k%111I the CEQA Guidelines, because they have no potential to have a significant effect on the environment; b) adopt Resolution No. 2022-13, AResolution of the City Council of the City of Newport Beach, California, Finding the Newport Beach General Plan 6th Cycle Housing Element Update for the 2021-2029 Period Consistent with the Purposes of the State Aeronautics Act and Overriding the Orange County Land Use Commission's Determination that it is Inconsistent with the 2008 John Wayne Airport Environs Land Use Plan (PA2017-141); and c) adopt Resolution No. 2022-14, A Resolution of the City Council of the City of Newport Beach, California, Adopting the 6th Cycle Draft Housing Element for the 2021-2029 Period as General Plan Amendment No. GP2021-005 (PA2017- 141). The motion carried unanimously. 9. Sculpture Exhibition in Civic Center Park - Phase VII (C-8834) [100-2021] Library Services Director Hetherton introduced Richard Stein, Orange County President and CEO, and Joseph Lewis, ^-ts n_ n ..it. (49(-)ai+ UCI Pmifesr. 1 Richard Stein introduced the team and utilized a presentation to review the sculpture exhibition selection process, Phase VI ground map, and the P4ase VII recommended selections, alternates, and site locations. V Council Member Dixon extended her appreciation and congratulations, and complimented the City Arts Commission and Arts OC, and acknowled d munity selection process. In response to Council Member Dixon's question, Mr. St an increased budget to attract more local artists and noted challenges related to aptors. In response to Council Member Brenner's question, Mr. Stein discussed changing the voting guidelines for future phases, troubleshooting voting technology issues, and permanent sculpture acquisitions. Jim Mosher sugges69a voting system alternative and noted a lighting discrepancy relative to the rd nest on a tower sculpture. Arlene Greer thardAdirmincil for supporting the City Arts Commission and programming, expressed her pleas& with public input received during the selection process, recounted the engaging sculpturesrWnd proposed an aggressive publicity and marketing approach to reach Southern California artists. Council Member Avery commended the City Arts Commission, acknowledged the effort behind art rotations, and relayed the exceptional collection in Phase VII. Ms. Greer noted the opportunity provided to visitors with an open-air museum during the pandemic. Council Member Dixon thanked the Arts Foundation for its fundraising contribution of $20,000, and in response to her question, Ms. Greer explained the logic for the voting guidelines and suggested future ideas for voting. 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; and b) approve the 10 sculptures and their placement and four alternate sculptures within Civic Center Park, as selected by the public and recommended by the City Arts Commission, for the temporary sculpture exhibit. Volume 65 - Page 255