HomeMy WebLinkAbout01 - MinutesJune 28, 2022
CITY OF NEWPORT BEACH Agenda Item No. 1
City Council Meeting Minutes
Study Session and Regular Meeting
June 14, 2022
I. ROLL CALL — 4:00 p.m.
City Clerk Brown announced that Council Member Dixon was participating from a
teleconference location pursuant to Government Code Section 54953(b) — 81 State Street,
Brooklyn, New York.
Present: Mayor Kevin Muldoon, Mayor Pro Tem
Member Joy Brenner, Council Member
Duffield, Council Member Will O'Neill
II. CURRENT BUSINESS
Noah Blom, Council Member Brad Avery, Council
Diane Dixon (via Zoom), Council Member Duffy
SS1. Clarification of Items on the Consent Calendar — None
SS2. Alzheimer's and Brain Awareness Month Proclamation
Mayor Muldoon read the proclamation and presented it to 01 Wexler who noted the local
Alzheimer's chapter provides free services and support.
SS2. Wildland Fire Mitigation OverviAfllh, W
Fire Chief Boyles noted that the Emerald and Coastal fires occurred during non -red flag days
and discussed efforts with the Orange County Fire Authority and joint responses for mutual air
and ground resource aid with Los AngelesCountyand Ventura County. Fire Marshal Bass
utilized a presentation to review wildland Ge mitigation efforts, new laws, State Insurance
Commissioner meeting updates, observations from the 2022 Coastal fire, a fire prevention focus,
and recommendations for Council cexeideration.
City Attorney Harp announced that Council Member O'Neill would recuse himself due
to a property interest conflict related to high fire zone recommendations.
In response to Council Member Brenner's questions, Fire Marshal Bass discussed the map that
includes the Very High Fire Hazard Severity Zone (VHFSZ) and how new areas that do not exist
yet will impact insurance eligibility, noted standards under development to support insurance
policy issuance and reasonable pricing, described firewise landscaping, indicated a field zone for
Newport Coast and Buck Gully homes, and relayed slope failure challenges. Fire Chief Boyles
described features of the new wildland fire engine.
Council Member O'Neill provided an update on the Newport Coast Annexation Agreement, a
shared maintenance obligation by the City and homeowners association, indicated increased
insurance costs with new high risk fire zone maps, and the impact to housing development.
In response to Council Member O'Neill's question, City Attorney Harp confirmed there may be
an overlap between Buck Gully and Newport Coast for the recommended code changes.
Council Member Avery noted rate increases for homeowners' insurance, inspection
requirements, and rate increases resulting from neighboring infractions.
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In response to Council Member Avery's questions, Fire Marshal Bass relayed conflicting
California Department of Forestry and Fire Protection (CalFire) standards with local ordinances
and efforts to establish mutual rules, explained related dangers with roof types, and noted
insurance companies have sent out privately contracted firefighters to defend houses.
Sandy Mohachy questioned if there would be sufficient water. Fire Marshal Bass indicated that
water flow availability is determined at the beginning of a project, tract map creation and water
flow is continued through maintenance efforts, and noted that the Utilities Department can
provide alternate sources of water.
In response to Council Member Brenner's question, Fire Chief Boyles indicated that, due to
corrosion concerns, fresh water is used for fire hoses while helicopters can use buckets to pick
up ocean water.
III. PUBLIC COMMENTS ON AGENDA AND NON -AGENDA ITEMS
Sandy Mohachy expressed concern regarding fraud committed through quitclaim deeds. Mayor
Muldoon concurred and indicated that, while the City does not have jurisdiction over this matter, a
solution may be addressed by State legislation and implemented by County Assessors or Clerk
Recorders.
In response to Council Member Brenner's question, Cilty Attorney Ha7doncurred with Mayor Muldoon.
Council Member O'Neill suggested that anyone concerned about real estate fraud go to the Orange
County Clerk Recorder's website for more information on quitclaim deeds.
City Attorney Harp announced that the City Council would adjourn to Closed Session to
discuss the items listed in the Closed Session agenda and read the titles.
IV. CLOSED SESSION - After Study Session - Council Chambers Conference Room
A. CONFERENCE WITH LABOR NEGOTIATORS
(Government Code § 54957.6): 1 mattes
Agency Desig d Representatives: Grace K. Leung, City Manager, Barbara Salvini, Human
Resources Direc r, and Charles Sakai, Esq., Negotiators.
Employee Organizakon/Association of Newport Beach Ocean Lifeguards (ANBOL); Newport
Beach City Employees mociation (NBCEA); Newport Beach Employees League (NBEL); Newport
Beach Firefighters Association (NBFA); Newport Beach Fire Management Association (NBFMA);
Newport Beach Lifeguard Management Association (NBLMA); Newport Beach Police Association
(NBPA); Newport Beach Police Management Association (NBPMA); Newport Beach Professional and
Technical Employees Association (NBPTEA); Part Time Employees Association of Newport Beach
(PTEANB); and Key and Management - unrepresented employees.
B. CONFERENCE WITH LEGAL COUNSEL
ANTICIPATED LITIGATION
(Government Code § 54956.9) (d)(2), (e)(1)): 1 matter
V. RECESSED - 4:43 p.m.
VI. RECONVENED AT 5:30 P.M. FOR REGULAR MEETING
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VII. ROLL CALL
City Clerk Brown announced that Council Member Dixon was participating from a
teleconference location pursuant to Government Code Section 54953(b) — 81 State Street,
Brooklyn, New York.
Present: Mayor Kevin Muldoon, Mayor Pro Tem
Member Joy Brenner, Council Member
Duffield, Council Member Will O'Neill
VIII. CLOSED SESSION REPORT
Noah Blom, Council Member Brad Avery, Council
Diane Dixon (via Zoom), Council Member Duffy
City Attorney Harp announced that no reportable actions were taken.
IX. INVOCATION — Roy Englebrecht
X. PLEDGE OF ALLEGIANCE — Council Member Avery
XI. NOTICE TO THE PUBLIC %k
XII.
COMMITTEE ACTIVITIES
Council Member O'Neill:
y
• Thanked the Newport Beach Foundation for the Distinguished Citizen Program and the
opportunity to speak, the Newport Harbor High School (NHHS) Memorial Day Ceremony
participants and organizers, and the Exchange Club of Newport Harbor for the Field of Honor
• Announced he participated in a talk about civics with a second grade class at Our Lady Queen of
Angels, the Balboa Island Parade, and the start of the Newport Beach Junior Lifeguards program
Council Member Dixon:
• Attended the NHHS Memorial Day Ceremony and Field of Honor
• Utilized a slide to announce the Dis+ict 1 Town Hall meeting on July 19, 2022 from 5:30 p.m. to
7:00 p.m. at Marina Park
• Attended the Balboa Island Parade
• Requested a future agenda item to consider electric bike safety and enacting more stringent local
regulations that excee?l State laws for electric bikes
Council Member Brenner:
• Attended the NHHS Memorial Day Ceremony and the Concert on the Green
• Announced upcoming Concerts on the Green and directed the community to check the City website
• Visited the wildland fire truck with Mayor Muldoon and his son, and Council Member O'Neill and
his daughter
• Met with Public Works, City Manager Leung, and Newport Beach Police Department (NBPD) at
Big Corona to discuss activities at Pirates Cove
• Attended a University of California, Irvine (UCI) presentation on the UCI Naturescape, a meeting
with Orange County Sheriff Don Barnes who spoke at the Corona del Mar (CdM) Chamber
Governmental Affairs meeting, the Newport Mesa Unified School District (NMUSD) quarterly
meeting with City Manager Leung and Council Member O'Neill, and announced a NBPD training
on the campus of Corona del Mar High School (CdMHS)
Council Member Avery:
• Attended the Balboa Island Parade with his wife and grandson
• Recapped the high tide event
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Mayor Muldoon:
• Utilized slides to show Council Member Dixon, Council Member Brenner, and himself with the
handicap lift installed at Marina Park, and announce the events and activities planned for July 4th
• Announced the wildland fire truck roll -out
XIII. PUBLIC COMMENTS ON CONSENT CALENDAR
David Tanner requested Item 19 (Annual Measure M2 Eligibility Submittal) be pulled to discuss
potential California Environmental Quality Act (CEQA) subjectivity of the Old Newport Boulevard/West
Coast Highway modifications project.
Mayor Muldoon recused himself during discussions regarding Item 19 due to potential future
business interest conflicts.
Jim Mosher questioned why Item 5 (Initiation of Amendments to the General Plan Land Use and Noise
Elements, the Zoning Code and the Newport Place Planned Com unity Development Standards) was
included on the Consent Calendar since it received seven "no" v
XIV. CONSENT CALENDAR
READING OF MINUTES AND ORDINANCES
1414
1. Minutes for the May 24, 2022 Special Joint Meeting of the City Council and Finance
Committee and the May 24, 2022 City Moncil Meeting [100-20221
Waive reading of subject minutes, approve as amended, and order filed.
2. Reading of Ordinances 1 0
Waive reading in full of all ordinances unde sideration and direct the City Clerk to read by title
only.
ORDINANCE FOR INTRODUCTION
3. Ordinance No. 2022-14 a Resolution No. 2022-34: Eastbluff Preferential Parking Zone
Revisions [100-2022]
a) Determine this action is xempt 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 amended Resolution No. 2022-34, A Resolution of the City Council of the City of Newport
Beach, California, Limiting the Parking of Vehicles on Aleppo Street between Aralia Street and
Arbutus Street, Alta Vista Drive between Aralia Street and Arbutus Street, and Arbutus Street,
and Rescinding Resolution No. 2016-100; and
c) Waive full reading, direct the City Clerk to read by title only, and introduce Ordinance No. 2022-
14, An Ordinance of the City Council of the City of Newport Beach, California, Amending Section
12.68.060(C) of the Newport Beach Municipal Code To Remove Certain Streets from the
Preferential Parking Program in Zone 'Y' - Eastbluff, and pass to second reading on June 28,
2022.
ORDINANCE FOR ADOPTION
4. Ordinance No. 2022-13: Amendment to Municipal Code Chapter 14.16, Water
Conservation and Water Supply Shortage Program [100-20221
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
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b) Conduct second reading and adopt 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.
RESOLUTIONS FOR ADOPTION
5. Resolution No. 2022-35: Initiation of Amendments to the General Plan Land Use and Noise
Elements, the Zoning Code and the Newport Place Planned Community Development
Standards (PA2022-110) [100-2022]
With the entire City Council voting "no," Item 5 was not adopted.
6. Resolution Nos. 2022-36 and 2022-37: Adoption of Fiscal Year 2022-23 Appropriations
Limit and Amendment to the Fiscal Year 2021-22 Appropriations Limit [100-2022]
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 amended Resolution No. 2022-36, A Resolution of the City Council of the City of Newport
Beach, California, Amending the Appropriations Limit for Fiscal Year 2021-22 in Accordance
with Article XHIB of the California Constitution and Government Code Section 7910, in the
amount of $220,661,795; and I
c) Adopt Resolution No. 2022-37, A Resolution 4 the City Council of the City of Newport Beach,
California, Determining and Establishing the Appropriations Limit for Fiscal Year 2022-23 in
Accordance with Article XIIIB of the California Constitution and Government Code Section 7910,
in the amount of $236,775,921.
7. Resolution No. 2022-38: Authorizing the Temporary Closure of Selected Streets for the
Fourth of July Holiday Period [I00-2022]
a) Determine that the action is exempt from he 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. 2022-38, 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, 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.
8. Resolution No. 2022-39: Adopting a Memorandum of Understanding with the Newport
Beach Fire Management Association and Amending the Salary Schedule (C-2946) [38/100-
2022]
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 2022-39, 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 Fire Management Association and Amending the Salary Schedule; and
c) Approve Budget Amendment No. 23-002 appropriating $41,533 in increased expenditures in
various City division salary and benefit accounts from unappropriated General Fund balances.
9. Pulled from the Consent Calendar
10. Resolution No. 2022-41: Specifying Uses for FY2022-23 RMRA Funding from the Road
Repair and Accountability Act of 2017 [100-2022]
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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 Resolution No. 2022-41, A Resolution of the City Council of the City of Newport Beach,
California, Adopting a List of Projects for Fiscal Year 2022- 23 Funded by SB 1, The Road Repair
and Accountability Act of 2017.
CONTRACTS AND AGREEMENTS
11. Ocean Boulevard Sidewalk Improvements between Carnation Avenue and Fernleaf
Avenue — Notice of Completion for Contract No. 7623-1 (18R25) [381100-20221
a) Accept the completed work and authorize the City Clerk to file a Notice of Completion for the
project;
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.
12. Peninsula Point Encroachment Removal Project — Award of Contract No. 8814-1 (22M14)
[381100-20221 do
a) Find this project exempt from the California Environmental Quality Act (CEQA) requirements
pursuant to Sections 15250 of the CEQA Guidelines, as the plan defined in the California
Coastal Commission Consent Orders includes mitigation measures to minimize any significant
adverse effect on the environment;
b) Approve the project Plans and Specifications;
c) Award Contract No. C-8814-1 to SDG Enterprises for the total bid price of $588,024, and
authorize the Mayor and City Clerk to execute the contract;
d) Establish a contingency of $59,000 (approximately 10% of the total bid) to cover the cost of
unforeseen work not included in the original contract; and
e) Approve Budget Amendment No. 22-056 appropriating $101,066 in increased expenditures in
Account No. 01201938-980000-22M14 from the Capital Improvement Program Oceanfront
Encroachment unappropriated fund balance.
13. Approval of On -Call Professional Services Agreements for Landscape Architectural
Services [3811Q0-2022]
a) Determine trhis 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 arphysical change to the environment, directly or indirectly; and
b) Approve On -Call Ps-ofessional Services Agreements with Mark Thomas & Company, Inc.
(C-8890-1), BGB Design Group, Inc. (C-8890-2), RJM Design Group, Inc. (C-8890-3), and RDC-
S111, Inc. dba Studio One Eleven (C-8890-4) for landscape architectural design services, with
each agreement being for a term of three years and a total not -to -exceed amount of $150,000,
and authorize the Mayor and City Clerk to execute the agreements.
14. Amendment No. Two to Professional Services Agreement with Sampson Oil Company for
Oil Well Management Services (C-8490-1) [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) Approve Amendment No. Two to the Professional Services Agreement with Sampson Oil
Company for Oil Well Management Services, which extends the contract for one additional year
to July 31, 2023 and increases the total not -to -exceed contract amount by $750,000, and
authorize the Mayor and City Clerk to execute the Agreement.
15. Amendment No. One to a Professional Services Agreement with Sagecrest Planning and
Environmental for Staff Augmentation (C-7132-3) [381100-20221
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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. One to Professional Services Agreement with Sagecrest Planning and
Environmental for Staff Augmentation — Planning Services and authorize the Mayor and the
City Clerk to execute the Amendment.
16. Tentative Agreement with Newport Beach Police Management Association (NBPMA)
(C-2932) [381100-2022]
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 Police Management Association.
17. Pulled from the Consent Calendar
MISCELLANEOUS A
18. Planning Commission Action Report for they 26, 2022 Meeting and Agenda for the
June 9, 2022 Meeting [I00-2022]
Receive and file. _
19. Annual Measure M2 Eligibility Submittal [100-2022]
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 Capital Improvement Program (CIP); and
c) Direct staff to submit all necessary material to OCTA to satisfy the FY 2022-23 Measure M2
annual eligibility requirements. I
Mayor Muldoon recused himself from Item 19 due to potential future business interest
conflicts.
Mayor Pro Tem Blom recused himself from Item 19 due to real property interest conflicts.
T� MW
20. Third Quarter Budget Update [100-2022]
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 Budget Amendment No. 22-057, adjusting revenue estimates and expenditure
appropriations for the Fiscal Year 2021-22 budget as outlined in the report; and
c) Receive and file the report of budget amendments for the third quarter.
21. Board and Commission Scheduled Vacancies — Confirmation of Nominees [241100-2022]
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) Waive the portion of City Council Policy A-2 (Boards, Commissions & Committees) that
recommends nominating two or more candidates for each vacancy, if an insufficient number of
candidates are available; and
c) Confirm the nominations made by the City Council Ad Hoc Appointments Committee:
Board of Library Trustees [1 vacancy]
Ash Kumra
Laurel Tippett
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Jim Mosher
Building and Fire Board of Appeals [2 vacancies]
Bill Caskey (incumbent)
J.R. Walz (incumbent)
Kenneth Kasdan
City Arts Commission [1 vacancy]
Wayan Kaufman (incumbent)
Walt Howald
John Blom
Civil Service Board (Council nominee) [1 vacancy]
Sharon Wood (incumbent)
Matthew Parisi
Harbor Commission [3 vacancies]
Ira Beer (incumbent)
Don Yahn (incumbent)
Antonella Castro
Rudy Svrcek
Jordan Wachter
Bill Peterson
Parks. Beaches & Recreation Commission [2 vacanci
Diane Daruty (incumbent)
Hassan Archer (incumbent)
Michael Rutledge
Planning Commission [1 vacancy]
Debbie Stevens
Tristan Harris
Jonathan Langford
Motion by Mayor Pro Tern Blom seconded bvXouncil Member O'Neill, to approve the Consent
Calendar, except the items removed (Items 9 an 7); and noting the recusals by Mayor Muldoon and
Mayor Pro Tem Blom to Item 19, the "no" vote by the entire City Council to Item 5, and the amendments
to Items 1, 3 and 6.
The motion carried unanimous Y.
XV. ITEMS REMOVED FROM THE CONSENT CALENDAR
9. Resolution No. 2022-40. Supporting Senate Bill 904 [I00-20221
Assistant Police Chief Rasmussen relayed that the terms of Senate Bill (SB) 904 include non-violent
drug offense convictions and revisions to the existing law originally passed in 2000.
In response to Mayor Muldoon's question, Assistant Police Chief Rasmussen confirmed that while
no hearing is required to determine treatment completion and recidivism, a 20-hour education
program to address controlled substance effects and dangers has been added for those in custody.
Council Member O'Neill stated that he brought this item forward at the request of the Associated
California Cities of Orange County (ACC-OC), and as the City representative, asked for City Council
support of SB 904.
In response to Mayor Muldoon's question, Assistant Police Chief Rasmussen clarified that the
statute allows for clarifying language supporting reduced recidivism methods, program
modifications, and drug diversion and treatment success.
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Motion by Council Member O'Neill, seconded by Council Member Duffield, 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 Resolution No. 2022-40, A Resolution
of the City Council of the City of Newport Beach, California, Supporting Senate Bill 904, which will
Help Ensure that the Criminal Justice System Educates and Treats Non -Violent Offenders Suffering
from Addiction.
The motion carried unanimously.
17. Community Programs (C-8281) and Special Events Grants (C-8082) Recommendation for
Fiscal Year 2022-23 [381100-20221
City Attorney Harp announced that Mayor Pro Tent Blom recused himself from this item
due to business interest conflicts related to Balboa Island.
Council Member O'Neill noted the larger five-year signature event agreements, requested that the
required documents be submitted for the last few years before money disbursements, expressed
concern regarding the sponsorship percentage for Newport Beach Chamber of Commerce events,
and expressed the opinion that tourism -related funding should come from tourism funds, not the
General Fund.
In response to Mayor Muldoon's suggestion, City AttornerHarp confirmed the appropriateness of
including in the motion a contingency to the reports requested by Council Member O'Neill
prior to fund transfers.
Gregg Schwenk, Executive Director of the Newport Beach Film Festival, thanked the City Council
for their support, and noted that the Film Festival is the largest film festival in Coastal Southern
California and the largest luxury lifestyle film festival in the country.
Steve Rosansky, President/CEO of the Newport Beach Chamber of Commerce, supported the grant
for the boat parade and noted that the-Pdrade Co -Chairs Chris Delfs and David Beek, Chamber
members, and Commodore Club members were in attendance.
Tim Shields, CoLmodore Clubs noted the contributions by the volunteers and thanked the City
Council for their support.
James Morgan, Execut irector of E3 Solutions, acknowledged missing information on the fund
application, their expertise in leadership, the recent opening of a home for individuals with
intellectual disabilities, and thanked the City Council for their support.
Council Member Duffield expressed support for the boat parade but questioned the associated costs
and how the Chamber got involved, and suggested using the parade to raise money for a charity. In
response to Council Member Duffield's question, Mr. Rosansky indicated that the Chamber has been
running the parade for 70 years and noted the differences between a cost versus no -cost parade.
Council Member O'Neill noted uses of the Transient Occupancy Tax (TOT) in the General Fund and
a 40% year -over -year increase of the TOT portion allocated to the tourism bureau.
Council Member Brenner questioned whether the boat parade funds should be combined with the
TOT allocation discussion. Council Member O'Neill clarified his intention to protect General Fund
money and not combine the two.
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Council Member Avery discussed the growth of the TOT and Short -Term Lodging (STL) money that
was not anticipated when the agreement was created, the ability to invest funds in areas of greater
need, and agreement terms.
In response to Council Member Dixon's questions, Mr. Rosansky clarified that the Chamber is a
support organization for small businesses in Newport Beach, as well as the parade host and
organizer, and the Chamber utilizes Newport Beach and Company for parade marketing, volunteer
arrangements, registration, advertising, awards, brochures, fireworks, insurance, permits,
photography, the sound system for lead and end boats, and a reception for winners. Council Member
Dixon expressed the opinion that it is appropriate for the Chamber of Commerce to be a modest
sponsor of the boat parade. Mr. Rosansky indicated that an economic impact study commissioned
by Newport Beach and Company revealed that $6 million of direct revenue is generated for local
businesses over the five -night parade. Council Member Dixon acknowledged the return on
investment, this year's General Fund surplus, and expressed support for the boat parade as a
significant public relations opportunity and success story for the City.
Council Member O'Neill noted the relevance between the General Fund and TOT, budget
management, and scope of tourism funds, and indicated he will support the item.
Motion by Council Member O'Neill, seconded by Council Member Duffield, 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) pursuant to City Council Policy A-12, find that
the organizations listed in the staff reporTp-rovide community services or programs that serve
residents and are beneficial to residents' quality of life and authorize the allocation of $55,200 of the
Community Programs Grants in the following manner:
Communitygrams Grants Applicant
Advocates for Grandparent Grandcj ld Connection
Balboa Island Museum and HistoPWI Society
Newport BaConservancy
Newport Beach Historical Society
Newport -Mesa Family YMCA of Orange County
Orange Coast College Foundation Marine Program
Orange County Coastkeeper
Our Lady Queen of Angels - Helping Hands
Pacific Marine 4vmmal Center
Share Our Selves
Someone Cares Soup Kitchen
Youth Employment Services
Total
Recommendation
$1,000
$10,000
$6,000
$1,500
$3,000
$1,000
$3,000
$12, 500
$5,000
$5,500
$3,200
3 500
$55,200
c) approve $11,154 in fee waivers for the cost of renting the Community Room for the recurring
community programs provided by the San Diego Blood Bank ($6,464) and Speak Up Newport
($4,690); d) waive the stipulation in Council Policy A-12 that requires a General Fund expenditure
of $75,000 each fiscal year for the Community Programs Grant program; and e) pursuant to City
Council Policy A-12, find that the special events listed below are meritorious community, social or
athletic events that are beneficial to residents' quality of life, and authorize the allocation of
$300,000 of the Special Event Grants in the following manner:
Community & Charitable Events Recommendation
4th of July Parade and Picnic $500
Andersen DEANs Port of July $500
Annual Corona del Mar Christmas Walk $5,000
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Annual Corona del Mar Scenic 5K
Annual Newport Classic Surf Contest
Balboa Beerfest
Balboa Island Carnival & Taste of Balboa
Balboa Island Parade
Balboa Island Summer Concert Series
Balboa Island Tree Lighting and Snow Day
Car Show
Corona del Mar Sandcastle Contest
Field of Honor
Lobsterfest at Newport Beach
The California Gold
Walk for Patrick "Patty" Turner
Wooden Boat Festival
Total
SiL-nature Events
Hoag Classic
Komen Orange County MORE THAN
Newport Beach Christmas Boat Para(
Newport Beach Film Festival
Newport -Mesa Spirit Run
Newport to Ensenada Yacht Race
Total
With Mayor Pro Tern Blom recusing himself, the motion carried 6-0.
XVI. PUBLIC COMMENTS ON NON -AGENDA ITEMS
$12, 750
$1,500
$1,100
$2,000
$9,800
$1,550
$500
$500
$650
$3,000
$2,000
$2,400
$750
500
$45,000
Recommendation
$15,000
$10,000
$50,000
$149,000
$21,000
10 000
$255,000
Roy Englebrecht expressed his opinion relative to the Measure B special election. Mayor Muldoon
clarified that no special ele n took place.
Council Member Avery proposed working together after the Measure B election and conducting
respectful engagement, clarified a democratic Council vote, and expressed wanting to move forward.
Ryan Farsai recognized Flag Day and discussed the U.S. Constitution, division of the masses, Article V
for amendments to the Co*stitution, a country of 60 kings, and the growing population in the rich and
poor classes.
Charles Klobe thanked Council Member Avery for his letter addressing unity.
XVII. PUBLIC HEARINGS
22. Resolution Nos. 2022-42 and 2022-43: Fiscal Year 2022-23 Budget Adoption, Budget Public
Hearing, Recommendations from the Finance Committee, and Proposed Budget Revision
Items; and City Council Policy F2, Reserve Policy, and City Council Policy F-28, Facilities
and Harbor and Beaches Financial Planning Programs [381100-20221
Finance Director Catlett and Senior Budget Analyst Burguan utilized a presentation to summarize
the key budget messages, proposed budget revisions, revised General Fund sources and uses, the
proposed budget amendment, approval of position classifications and salary ranges, proposed City
Council policy changes, and recommendations.
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City of Newport Beach
City Council Meeting
June 14, 2022
In response to Council Member O'Neill's question, Finance Director Catlett clarified the surplus
projection for the current fiscal year and indicated that a final number will be available in
September after closing the books.
Mayor Muldoon opened the public hearing.
Jim Mosher noted the discontinuance of the open budget feature on the City website and discussed
challenges following the budget report and the CalRecycle grant.
Hearing no further testimony, Mayor Muldoon closed the public hearing.
Council Member O'Neill thanked members of the Finance Committee and noted the tiered system
to adjust the budget and rollback, the resolution of short- and long-term issues, Capital
Improvement Program (CIP) money, renewed optimism, economic indicators affecting residents and
visitors, contingency and built-up reserves, core service expenditures, funding for unfunded pension
liabilities, and his pride for the budget and appreciation to City Manager Leung.
Council Member Avery thanked Council Member O'Neill for his leadership on the Finance
Committee and expressed faith in the Finance Co4,e*h)Vnce
e handling future challenges.
Council Member Brenner thanked Council Memb Committee members, and
City staff.
Council Member Dixon recognized the sustainable property tax revenue in Newport Beach, economic
challenges ahead, professional staff, Finance Committee, &budget surplus, balanced budgets, and
continued investments in the community to maintain TOT. She thanked staff, the Finance
Committee, staff s conservative expectations, and City Manager Leung for converting employees to
full-time employees at a modest cost.
Mayor Muldoon expressed his approval of tW high reserves and debt paydown included in the
budget, but noted his philosophical op o� sn related to full-time position conversions and concern
for the City's liability due to CalPERS' investment strategies.
Motion by Council Member O'Neill, seconded by Council Member Avery, 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 2022-42, A Resolution of
the City Council of the City of Newport Beach, California, Adopting the Budget for the 2022-23 Fiscal
Year; c) approve the City Manager's recommended list of City of Newport Beach position
classifications and their salary ranges as required by the California Public Employees' Retirement
System (Ca1PERS) and in accordance with 2 CCR § 570.5 (a)(1); d) receive and file the salary
schedule for the Lifeguard Operations Assistant Chief classification in the Lifeguard Management
Association (LMA), which was erroneously omitted from Exhibit A to the Memorandum of
Understanding (C-2058(B)) between the City of Newport Beach and the LMA when reviewed and
approved by the City Council on May 10, 2022; e) approve Budget Amendment No. 23-001,
appropriating structural surplus revenue to one-time expenditure appropriations. Funds will be
allocated to the Ca1PERS Unfunded Accrued Liability (UAL) additional payment for FY 2022-23,
Facilities Financial Plan, and FY 2023-24 Capital Improvement Projects; and f) adopt Resolution
No. 2022-43, A Resolution of the City Council of the City of Newport Beach, California, Amending
City Council Policy F-2, Reserve Policy, and City Council Policy F-28, Facilities and Harbor and
Beaches Financial Planning Programs, to incorporate revisions recommended by the Finance
Committee and other minor edits.
With Mayor Muldoon voting "no," the motion carried 6-1.
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City of Newport Beach
City Council Meeting
June 14, 2022
23. Ordinance No. 2022-15: Approving a Military Equipment Use Policy for the Newport
Beach Police Department [100-20221
Mayor Muldoon opened the public hearing.
Jim Mosher noted a contradiction between Findings One and Three in the Ordinance.
Hearing no further testimony, Mayor Muldoon closed the public hearing.
Council Member O'Neill noted the associated money and time the Newport Beach Police Department
will incur due to this requirement and expressed the opinion that the Ordinance is a waste of local
resources and an example of government overreach.
Motion by Council Member O'Neill, seconded by Council Member Duffield, to 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) waive full reading, direct the City Clerk to
read by title only, and introduce Ordinance No. 2022-15, An Ordinance of the City Council of the
City of Newport Beach, California, Approving a Military Equipment Use Policy for the Newport
Beach Police Department, and pass to second reading on June 28, 2022.
The motion carried unanimously. '
XVIII. MOTION FOR RECONSIDERATION - Non
XIX. ADJOURNMENT - Adjourned at 7:07 p.m. in honor of the victims of the Uvalde, Texas,
shooting
The agenda was posted on the City's website nd on the City Hall electronic bulletin board
located in the entrance of the City Council Chambers at 100 Civic Center Drive on
June 9, 2022, at 4:00 p.m • d on June 13, 2022, at 7:00 p.m. (ET) at 81 State Street, Brooklyn,
New York.
Kevin Muldoon
Mayor
Leilani I. Brown
City Clerk
Volume 65 - Page 334