Loading...
HomeMy WebLinkAbout01 - MinutesJune 14, 2022 CITY OF NEWPORT BEACH Agenda Item No. 1 City Council Minutes Special Joint Meeting with the Finance Committee May 24, 2022 I. CALL MEETING TO ORDER - 4:00 p.m. II. ROLL CALL Present: 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, Finance Committee Member William Collopy, Finance Committee Member John Reed, Finance Committee Member Nancy Scarbrough Absent: Mayor Kevin Muldoon (excused) and Finance Committee Member Joseph Stapleton (excused) PRESENTATIONS • Recognition of Retired Library Services Director Tim Hetherton Mayor Pro Tem Blom highlighted Tim Hetherton's 23-year career with the City and presented him with a plaque and retirement pin. Mr. Hetherton expressed his gratitude to the CitylCouncil, his co4ues, and his wife, Jennifer, for supporting him through the greatest professional honor of his life. Council Member Brenner thanked Mr. A*Awor his patience during the Corona del Mar fire station and library design process. Proclamation Honoring the Newport Harbor High School Boys and Girls Water Polo CIF, State and National Champions Mayor Pro Tem Blom rem e proclamation and presented it to Coach Ross Sinclair who thanked the City Council for honoring the team and-OT7essed his pride for both teams' accomplishments. Mental Health Mayor Pro Ten. Extraordinary 1 explained the fo IV. CURRENT BUSINESS Month Proclamation the proclamation and presented it to Mara James, founder of The ation, who thanked the City Council, introduced Piggie Bear, and ission. 1. Review of the Proposed Fiscal Year 2022-23 Operating Budget [I00-20201 Finance Director Catlett and Senior Budget Analyst Burguan utilized a presentation to summarize the principles guiding the budget development, opportunities for public review of the budget, highlights of the Fiscal Year (FY) 2021-22 third quarter budget update, budget overview summary of all funds, expenditures, historical budget trend with the prior years' Tidelands Fund expenditures restated to the current presentation format, operating expenditures trend for all funds, expenditures by fund, major fund operating expenditures, and CIP investment in infrastructure and facilities. Furthermore, the presentation reviewed the General Fund (GF) revenue summary, historical GF revenues, and three revenue sources, projections, and growth history: property tax, sales tax, and Transient Occupancy Tax (TOT). Additionally, the presentation reviewed the GF expenditures and operating expenditures trend, efforts to enhance budgeting accuracy, reasons for the 8.1% budget growth, adjusted unfunded liability paydown strategy, long-term pension liability reduction projections, GF expenditures by department, and GF transfers. Lastly, the presentation summarized GF reserves and surplus, GF sources and uses, key GF program enhancements, proposed realignment Volume 65 - Page 313 City of Newport Beach Special Joint Meeting with the Finance Committee May 24, 2022 of part-time to full-time staff and additional staffing, a five-year staffing plan, recommended enhancements, and a recap of key messages. In response to Council Member Dixon's question regarding Unfunded Accrued Liability (UAL) protection, Finance Director Catlett clarified that the presentation reflected numbers released by CalPERS up to June 30, 2021, noted challenges related to loss predictions, highlighted the six to ten year projection, market activity variables, and diverse Ca1PERS investments to reduce losses, and clarified the City Attorney's budget relocation. Council Member O'Neill noted the difference in the budget over recent years, thanked Finance Committee members, the City Manager, the Finance Director, and the Finance Department, proposed a conservative approach moving forward and strategies for the current budget surplus, and acknowledged the 100% return of services and money saved. Council Member Avery concurred with Council Member O'Neill, discussed changes in the budget over time and in staff and public service areas within the budget. "A In response to Council Member Dixon's question, Finance Director Catlett indicated that the City has planned the budget for a return to full staffing levels. Council Member Dixon thanked staff and the Finance Committee for managing the City's financial resources. Jim Mosher suggested a copy of the proposed budget be made al0able in the Central Library for public review. Mayor Pro Tem Blom thanked staff and the Finance Cox�tee. Council Member Duffield thanked the Finance Committee members. V. PUBLIC COMMENTS An - Nancy Gardner expresseher reasons for opposing Measure B. Mayor Pro Tem Blom thanked members of the Finance Committee for attending the meeting. VI. ADJOURNMENT - 5:01 p.m. The special meeting agVea s posted on the City's website and on the City Hall Electronic Bulletin Board locatedtrance of the City Council Chambers at 100 Civic Center Drive on May 19, 2022, at 4:00 p.m. Leilani I. Brown City Clerk Kevin Muldoon Mayor Volume 65 - Page 314 June 14, 2022 CITY OF NEWPORT BEACH Agenda Item No. 1 City Council Meeting Minutes Study Session and Regular Meeting May 24, 2022 I. ROLL CALL — 5:02 p.m. Present: 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 Absent: Mayor Kevin Muldoon (excused) II. CURRENT BUSINESS SS1. Clarification of Items on the Consent Calendar — None SS2. Review of the Proposed Fiscal Year 2022-23 Capital Improvement Program Budget City Attorney Harp recused himself from the Newport Coast Pickleball Courts project due to real property interest conflicts. Council Member Brenner recused herself from the48- rm Drain System Repair/ Rehabilitation project due to real property interest co Mayor Pro Tem Blom recused himself from the Assessment Districts 22 and 111 projects, the Balboa Island Drainage Master Plan✓Pump Station project, and the Balboa Island/Corona del Mar Microtransit Feasibility Study project due to real property interest conflicts. Public Works Director Webb and Deputy Public Works Director Houlihan utilized a presentation to review the purpose of the Capital Improvement Program (CIP), 2021-2022 CIP projects, completed Fiscal Year (FY) 2021-22 projects, the proposed 2022-2023 CIP budget, City Council priorities, projects by CIP budget section, and the CIP budget summary and funding sources. In response to Council Member Dixon's question, Deputy Public Works Director Houlihan confirmed that the $31.511'llion in public and private contributions represents approximately half of the total cost. In response to Co cil Member O'Neill's questions, Deputy Public Works Director Houlihan confirmed that the e City Yard Fueling Support Facilities would cost about $7 million and City Manager Leung confirmed the inclusion of the Civic Center and fire station in the transfer funds from the General Fund (GF) to the Facilities Financing Plan. Public Works Director Webb clarified that, pending no additional expenses, the contingency funds would be returned. In response to Council Member Avery's question, Deputy Public Works Director Houlihan relayed the estimated timeline for the 15th Street Restroom Project. Public Works Director Webb anticipated the permitting process to take longer than anticipated due to its beach location. Council Member Dixon expressed support for the projects and related budgeting, and requested an overlay map which calendars construction to minimize impacts on residents and businesses. In response to Council Member O'Neill's question, Public Works Director Webb confirmed that the master plan includes funding for park refurbishments. In response to Council Member Avery's request, Public Works Director Webb provided an update on the harbor dredging project and permitting phase, noted the City received $15 million in Volume 65 - Page 315 City of Newport Beach City Council Meeting May 24, 2022 Federal funding, reported that construction will begin in fall or early winter and last six to eight months, and assured that the project will involve working with the residents to minimize impact. In response to Council Member Dixon's question, Public Works Director Webb indicated that the City does not have the resources to handle the Peninsula Encroachment Removal program independently. Council Member Avery thanked the Public Works Department for their extraordinary efforts to protect property values and its upkeep of public infrastructure. Public Works Director Webb complimented the leadership of the City Council and fiscal nature of the City. Mayor Pro Tem Blom thanked staff and the Public Works Department for their efficiency and noted the cleanliness of the oil well tanks in the City. In response to Nancy Scarbrough's question, Deputy Public Works Director Houlihan clarified the water wheel project would begin before the year end She expressed concerns relative to whether the City's implementation schedule is on tr ith that of the California Coastal Commission (CCC) for the oceanfront encroachments Charles Klobe questioned whether the oil well refurbishments include remediation in lieu of the new Banning Ranch owner, indicated that the City of Costa Mesa requires property owners to slurry after new construction, expressed concern over the inability to cross at the street level on West Coast Highway due to the pedestrian bridge project and encouraged public outreach, and requested clarification relative tot Newppft Boulevard and Pacific Coast Highway improvements. Jim Mosher expressed support for having more projects designed in-house, questioned the pursuit of the early earthquake alarm systeTn, and relayed that there is a small window of time in which the water wheel construction projecould occur. Deputy Public Worka-Director Houlihh clarified that the water wheel project would begin in December 2022,and work to the creee in fall 2023 or late spring. Public Works Director Webb discussed the Old Newport and Pacific Coast Highway improvements and related challenges with Caltrans, noted the slurry sealing requirement in Newport Beach, clarified that the oil well refurbishment is not part of Banning Ranch, relayed that the oceanfront encroachment project start date matches CCC's timeline, and discussed public outreach on the street level crosswalk removal on West oast Highway. City Manager Leung indicated that the earthquake alarm system will be consilbered at a later date. In response to Council Member Dixon's question, Public Works Director Webb indicated that costs related to oil barrels are part of the revenue stream. Mayor Pro Tem Blom relayed that the gas byproduct from the oil well is used to power Hoag Hospital. III. PUBLIC COMMENTS ON AGENDA AND NON -AGENDA ITEMS — None IV. RECESSED — 5:45 p.m. V. RECONVENED AT 6:06 P.M. FOR REGULAR MEETING VI. ROLL CALL Present: 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 Volume 65 - Page 316 City of Newport Beach City Council Meeting May 24, 2022 XI. Absent: Mayor Kevin Muldoon (excused) INVOCATION — Pastor Jorge Molina, Mariners Church, Irvine PLEDGE OF ALLEGIANCE — Council Member Avery NOTICE TO THE PUBLIC CITY COUNCIL ANNOUNCEMENTS AND ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES Council Member O'Neill: • Attended the Laguna Woods City Council meeting as Transportation Corridor Agency (TCA) Chairman and expressed his sympathy for their grief following the local church shooting Council Member Duffield: • Attended the Fire Department badge pinning ceremo Council Member Dixon: vr • Utilized slides to review the Touch a Truck Public Works event unce the "Make a Splash, Pick Up Trash" campaign (nbclean@newportbeachca.gov end newportbe .gov/clean), and announce the Balboa Peninsula Trolley schedule • Attended the Aviation Committee meeting, lift for handicapped boaters launch at Marina Park with Mayor Muldoon and Council Member Brenner, the Mayor's Dinner, Castaways Exchange Club Armed Forces Day Flag Ceremony, and the Police Department badge pinning ceremony Council Member Brenner: • Announced that she graduated from the Citize s Police Academy • Discussed the fire in Laguna Niguel • Attended the Christmas Boat Parade awe r event hosted by the Chamber of Commerce, the Mayor's Dinner, and the Police Depart and Fire Department badge pinning ceremonies • Utilized a slide to announce the Summer Concerts on the Green schedule I Council Member Avery: • Attended the Finance ComInittee meeting, Orange County Sanitation District (OCSD) administration meeting, Homeless Ad Hoc meeting, Christmas Boat Parade awards, Touch A Truck event, Mayor's Dinner) and the Fire Department badge pinning ceremony Mayor Pro Tem Blom: • Attended the Mayor's Dinner and the Aviation Committee meeting, and thanked Assistant City Manager Finnigan for helping to run the meetings • Announced that the Newport Aquatic Center boys and girls teams' will be going to Florida to compete in the National Championships MATTERS WHICH COUNCIL MEMBERS HAVE ASKED TO BE PLACED ON A FUTURE AGENDA • Consider the adoption of a resolution supporting Senate Bill No. 904, which will amend California law to clarify current statutes and ensure the criminal justice system is helping educate and treat those offenders who are suffering from addiction to controlled substances [Council Member O'Neill] Mayor Pro Tem Blom and Council Members Avery, Brenner, Dixon, Duffield, and O'Neill concurred to bring the item back at a future meeting. Volume 65 - Page 317 City of Newport Beach City Council Meeting May 24, 2022 XII. PUBLIC COMMENTS ON CONSENT CALENDAR — None XIII. CONSENT CALENDAR READING OF MINUTES AND ORDINANCES 1. Minutes for the May 10, 2022 City Council Meeting [100-2022] 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. CONTRACTS AND AGREEMENTS 3. Cliff Drive Clubhouse Rehabilitation — Notice of Completion for Contract No. 8695-1 (20F13) [381100-20221 a) Accept the completed work and authorize the City Clerk to file a Notice of Completion for the project; meL b) Authorize the City Clerk to release the Labor and Materials Bond 65 days after Notice of Completion has been recorded in accordance with applicable portions of the Civil Code; and c) Release the Faithful Performance Bond one year after acceptance by the City Council. 4. American Legion Bulkhead Wall Repair (Project No. 16H11) —Award of Contract No. 7659- 1 [381100-20221 a) Find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301, Class 1 (Existing Facilities - maintenance of existing public facilities involving negligible or no expansion of use) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3 because it has no potential to have a significant effect on the environment; b) Approve the project plans and specifications; c) Award Contract No. 7659-1 to Applied estoration, Inc. for the total bid price of $991,600, and authorize the Mayor and City Clerk o execute the contract; and d) Establish a contingency of $99,200 (approximately 10% of total bid) to cover the cost of unforeseen Work not included in the original contract. 5. Amendment No. Two to Temporary Employment Agreement with Rosalinh Ung (C-8647- 1) [381100-20221 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) Authorize the Mayor and Community Development Director to execute an amendment to the Post Retirement Temporary Employment Agreement with retired employee Rosalinh Ung. 6. Lease Agreement with Newport Ridge Community Association to Develop, Operate and Maintain Pickleball Courts at Newport Ridge Park (C-882-1) [381100-20221 a) Determine this project is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15301 and 15303 under Class 1 (Existing Facilitates) and Class 3 (New Construction or Conversion of Small Structures), respectively, of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it has no potential to have a significant effect on the environment. The exceptions to the Class 3 categorical exemption under Section 15300.2 are not applicable; b) Authorize the City Manager and City Clerk to execute a 30-year Lease Agreement by and between the Newport Ridge Community Association and the City of Newport Beach for the Development, Operation, and Maintenance of Pickleball Courts Complex at Newport Ridge Park (Lease), in a form substantially similar to the agreement prepared by the City Attorney; and Volume 65 - Page 318 City of Newport Beach City Council Meeting May 24, 2022 c) Review and approve the Conceptual Design and direct staff to proceed with final construction documents. City Attorney Harp recused himself from Item 6 due to real property interest conflicts. 7. Tentative Agreement with Newport Beach Fire Management Association (NBFMA) (C-2946) [381100-20221 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 consider the Tentative Agreement between the City of Newport Beach and the Newport Beach Fire Management Association. MISCELLANEOUS 8. Planning Commission Action Report for the May 12, 2022 Meeting [100-2022] Receive and file. 9. Set Public Hearing Date to Adopt Fiscal Year 2022-23 Budget [I00-20221 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) Schedule a public hearing of the City's Proposed Budget for Fiscal Year 2022-2023 for June 14, 2022, and direct the City Clerk to publish a notice of said hearing in accordance with Section 1102 of the Newport Beach Charter. Motion by Council Member O'Neill, seconded by Council Member Dixon, to approve the Consent Calendar and noting the amendments to Item 1. With Mayor Muldoon absent, the motion cared 6-0. XIV. ITEMS REMOVED FROM THE CONSENT CALENDAR — None t XV. PUBLIC COMME TS ON NON -AGENDA ITEMS Jim Mosher expressed his opposition to adding a policy to the City Charter that stipulates an agenda setting process. Owl Z Susan Skinner expressed the opinion that Measure B is not a simple proposal and may lead to disadvantages related to a concentration of power. Joe Garrett proposed a two-step application process for duplex and Accessory Dwelling Units (ADU) construction, but allowing the construction to occur at one time. XVI. PUBLIC HEARING 10.Ordinance No. 2022-13: Amendment to Municipal Code Chapter 14.16, Water Conservation and Water Supply Shortage Program [100-20221 Utilities Director Vukojevic, Utilities Manager Catron, and Sanjay Gaur from Raftelis utilized a presentation to discuss water conservation and shortage programs, new State requirements, the Newport Beach Municipal Code, provide an overview of the updates, permanent restrictions, updated procedures, the six water shortage levels, the enacting resolution and examples of a resolution to declare a water shortage, recommendations, additional restrictions that will be brought Volume 65 - Page 319 City of Newport Beach City Council Meeting May 24, 2022 back to the City Council, and relayed the City's conservation measures, investments, and smart planning that has earned the City self-sufficiency. In response to Council Member Brenner's questions, Utilities Director Vukojevic discussed areas in Newport Beach for groundwater investments and wastewater recycling. In response to Council Member Dixon's questions, Utilities Director Vukojevic indicated that the State has plans for large reservoir construction, agencies will be graded on their own water supply assessments, and the Metropolitan Water District is increasing water rates 5% to 8%, which is reflected in the rate study. Mayor Pro Tem Blom opened the public hearing. Jim Mosher expressed concern over the removal of definitions from the ordinance, water consumption expectations at fitness centers, and relief to fitness centers with water usage increases resulting from water restrictions. 14 Chuck Fancher supported the ordinance and suggested utilizing water budget as opposed to using an annual consumption measure. Hearing no further testimony, Mayor Pro Tem Blom cj�se public hearing. In response to Council Member Dixon's request, Utilities Director Vukojevic relayed that there is a predetermined minimum stop gap inclusion and compliance relief written in the ordinance to accommodate for water restriction fairness. I In response to Council Member Avery's questions, Utilities Director Vukojevic noted residential water use is the primary water consumption user in the City, discussed a 15% water use for irrigation, and confirmed having obtained landscaping measurements per house for a water budget. Motion by Council Member 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 e ironment, directly or indirectly; and b) waive full reading, direct the City Clerk to read by title only, introduce amended Ordinance No 2022-13, An Ordinance of the City Council of the City of Newport Beach, California, Amending Chapter 14.16 of the Newport Beach Municipal Code Pertaining to Water Conservation and Supply Level Regulations, and pass to second reading on June 14, 2022. With Mayor Muldoon absent, the motion carried 6-0. XVII. CURRENT BUSINESS 11. Resolution No. 2022-33: Seventh Amended and Restated Employment Agreement for City Clerk (C-7032-5) [381100-20221 City Clerk Brown recused herself due to personal financial effect conflicts. Human Resources Director Salvini and Human Resources Manager Sur relayed that the terms and conditions for the City Clerk's employment are outlined in the employment agreement and reported that the agreement is for a term of four years, expiring May 24, 2026, there is a a 5% merit adjustment upon the contract effective date, cost of living adjustments are tied to those received by executive management employees beginning January 2023 and each January thereafter, there is a City contribution of 2.5% of base salary to the City Clerk's 457 Plan for the first year and City paid Volume 65 - Page 320 City of Newport Beach City Council Meeting May 24, 2022 for 457 contributions equal to 1.5% of the base salary after the first year, and, if terminated without cause, the City will provide a maximum of six months of base salary subject to certain conditions. Motion by Council Member 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) approve and authorize the Mayor to execute a Seventh Amended and Restated Employment Agreement between the City of Newport Beach and City Clerk Leilani I. Brown, subject to the terms and conditions approved by the City Council; c) adopt Resolution No. 2022-33, A Resolution of the City Council of the City of Newport Beach, California, Modifying the Salary Range for the City Clerk; and d) approve Budget Amendment No. 22-055 appropriating $1,776 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. With Mayor Muldoon absent, the motion carried 6-0. XVIII. MOTION FOR RECONSIDERATION - None XIX. ADJOURNMENT - Adjourned at 7:07 p.m. with a Moment of Silence for the victims and their families of the Robb Elementary School shooting in Uvalde, Texas, and in memory of Mary Lou Hergel �r 10 The agenda was posted on the City's website and on the City Hall electronic bulletin board located in the entrance of the City . Chambers at 100 Civic Center Drive on May 19, 2022, at 4:00 p.m. City Clerk Kevin Muldoon Mayor Volume 65 - Page 321