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HomeMy WebLinkAbout06/14/2022 - Study Session / Regular MeetingCITY OF NEWPORT BEACH City Council Meeting Minutes Study Session and Regular Meeting June 14, 2022 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 Noah Blom, Council Member Brad Avery, Council Member Joy Brenner, Council Member Diane Dixon (via Zoom), Council Member Duffy Duffield, Council Member Will O'Neill II. CURRENT BUSINESS 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 Paul Wexler who noted the local Alzheimer's chapter provides free services and support. SS2. Wildland Fire Mitigation Overview 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 Angeles County and Ventura County. Fire Marshal Bass utilized a presentation to review wildland fire mitigation efforts, new laws, State Insurance Commissioner meeting updates, observations from the 2022 Coastal fire, a fire prevention focus, and recommendations for Council consideration. 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 (VHFHSZ) 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. 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. Volume 65 - Page 322 City of Newport Beach City Council Meeting June 14, 2022 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, City Attorney Harp concurred 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 matter Agency Designated Representatives: Grace K. Leung, City Manager, Barbara Salvini, Human Resources Director, and Charles Sakai, Esq., Negotiators. Employee Organizations: Association of Newport Beach Ocean Lifeguards (ANBOL); Newport Beach City Employees Association (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 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 Noah Blom, Council Member Brad Avery, Council Member Joy Brenner, Council Member Diane Dixon (via Zoom), Council Member Duffy Duffield, Council Member Will O'Neill Volume 65 - Page 323 City of Newport Beach City Council Meeting June 14, 2022 VIII. CLOSED SESSION REPORT 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 XII. CITY COUNCIL ANNOUNCEMENTS AND ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES Council Member O'Neill: • 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 District 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 exceed 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 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. Volume 65 - Page 324 City of Newport Beach City Council Meeting June 14, 2022 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 Community Development Standards) was included on the Consent Calendar since it received seven "no" votes. XIV. CONSENT CALENDAR READING OF MINUTES AND ORDINANCES 1. Minutes for the May 24, 2022 Special Joint Meeting of the City Council and Finance Committee and the May 24, 2022 City Council Meeting [100-20221 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. ORDINANCE FOR INTRODUCTION Ordinance No. 2022-14 and Resolution No. 2022-34: Eastbluff Preferential Parking Zone Revisions [I00-2022] 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. 2022-34, 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 Ordinance No. 2022-13: Amendment to Municipal Code Chapter 14.16, Water Conservation and Water Supply Shortage Program [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; and 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; Volume 65 - Page 325 City of Newport Beach City Council Meeting June 14, 2022 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 XIIIB of the California Constitution and Government Code Section 7910, in the amount of $220,661,795; and c) Adopt Resolution No. 2022-37, A Resolution of 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 XUIB 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 [100-20221 a) Determine that the action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because it will not result in a physical change to the environment, directly or indirectly; and b) Adopt Resolution No. 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) [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; 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] 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 (181125) [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. Volume 65 - Page 326 City of Newport Beach City Council Meeting June 14, 2022 12. Peninsula Point Encroachment Removal Project — Award of Contract No. 8814-1 (22M14) [381100-20221 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 [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) Approve On -Call Professional 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) [381100-2022] 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) 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 Volume 65 - Page 327 City of Newport Beach City Council Meeting June 14, 2022 MISCELLANEOUS 18. Planning Commission Action Report for the May 26, 2022 Meeting and Agenda for the June 9, 2022 Meeting [100-2022] Receive and file. 19. Annual Measure M2 Eligibility Submittal [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; 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. Mayor Muldoon recused himself from Item 19 due to potential future business interest conflicts, and Mayor Pro Tem Blom recused himself from Item 19 due to real property interest conflicts. 20. Third Quarter Budget Update [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; 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 [241100-20221 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; 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 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 Volume 65 - Page 328 City of Newport Beach City Council Meeting June 14, 2022 Parks, Beaches & Recreation Commission [2 vacancies] Diane Daruty (incumbent) Hassan Archer (incumbent) Michael Rutledge Planning Commission [1 vacancy] Debbie Stevens Tristan Harris Jonathan Langford Motion by Mayor Pro Tem Blom, seconded by Council Member O'Neill, to approve the Consent Calendar, except the items removed (Items 9 and 17); 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 unanimously. XV. ITEMS REMOVED FROM THE CONSENT CALENDAR 9. Resolution No. 2022-40: Supporting Senate Bill 904 [100-20221 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. 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, AResolution 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 Tem 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. Volume 65 - Page 329 City of Newport Beach City Council Meeting June 14, 2022 In response to Mayor Muldoon's suggestion, City Attorney Harp confirmed the appropriateness of including in the motion a contingency to receive 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 Parade Co -Chairs Chris Delfs and David Beek, Chamber members, and Commodores Club members were in attendance. Tim Shields, Commodores Club, noted the contributions by the volunteers and thanked the City Council for their support. James Morgan, Executive Director 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. 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 report provide 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: Volume 65 - Page 330 City of Newport Beach City Council Meeting June 14, 2022 Community Programs Grants Applicant Advocates for Grandparent Grandchild Connection Balboa Island Museum and Historical Society Newport Bay Conservancy 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 Mammal 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 4Lh of July Parade and Picnic $500 Andersen DEANs Port of July $500 Annual Corona del Mar Christmas Walk $5,000 Annual Corona del Mar Scenic 5K $12,750 Annual Newport Classic Surf Contest $1,500 Balboa Beerfest $1,100 Balboa Island Carnival & Taste of Balboa $2,000 Balboa Island Parade $9,800 Balboa Island Summer Concert Series $1,550 Balboa Island Tree Lighting and Snow Day $500 Car Show $500 Corona del Mar Sandcastle Contest $650 Field of Honor $3,000 Lobsterfest at Newport Beach $2,000 The California Gold $2,400 Walk for Patrick "Patty" Turner $750 Wooden Boat Festival 500 Total $45,000 Sienature Events Recommendation Hoag Classic $15,000 Komen Orange County MORE THAN PINK Walk $10,000 Newport Beach Christmas Boat Parade $50,000 Newport Beach Film Festival $149,000 Newport -Mesa Spirit Run $21,000 Newport to Ensenada Yacht Race $10,000 Total $255,000 With Mayor Pro Tem Blom recusing himself, the motion carried 6-0. Volume 65 - Page 331 City of Newport Beach City Council Meeting June 14, 2022 XVI. PUBLIC COMMENTS ON NON -AGENDA ITEMS Roy Englebrecht expressed his opinion relative to the Measure B special election. Mayor Muldoon clarified that no special election 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 Constitution, 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 [381100-2022] 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. 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 Committee handling future challenges. Council Member Brenner thanked Council Member O'Neill, the Finance Committee members, and City staff. Council Member Dixon recognized the sustainable property tax revenue in Newport Beach, economic challenges ahead, professional staff, Finance Committee, a budget surplus, balanced budgets, and continued investments in the community to maintain TOT. She thanked staff, the Finance Committee, staffs conservative expectations, and City Manager Leung for converting employees to full-time employees at a modest cost. Volume 65 - Page 332 City of Newport Beach City. Council Meeting June 14, 2022 Mayor Muldoon expressed his approval of the high reserves and debt paydown included in the budget, but noted his philosophical opposition related to full-time position conversions and concern for the City's liability due to Ca1PERS' 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. 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 — None XIX. ADJOURNMENT — Adjourned at 7:07 p.m. in honor of the victims of the Uvalde, Texas, shooting Volume 65 - Page 333 City of Newport Beach City Council Meeting June 14, 2022 The agenda was posted on the City's website and on the City Hall electronic bulletin board located in the entrance of the City Council Chambers at 100 Civic Center Drive on June 9, 2022, at 4:00 p.m.; and on June 13, 2022, at 7:00 p.m. (ET) at 81 State Street, Brooklyn, New York. 4Ar4Vh� Leilani I. Brown City Clerk Volume 65 - Page 334