HomeMy WebLinkAbout07/25/2023 - Regular MeetingCITY OF NE PORT BEACH
City Council Meeting Minutes
Regular Meeting
July 25, 2023
I. ROLL CALL - 4:02 p.m.
Present: Mayor Noah Blom, Mayor Pro Tem Will O'Neill, Council Member Brad Avery, Council Member
Robyn Grant, Council Member Lauren Kleiman, Council Member Joe Stapleton, Council
Member Erik Weigand
II. PUBLIC COMMENTS ON AGENDA AND NON -AGENDA ITEMS
Jim Mosher expressed the opinion that the public should be informed of the City's interest in
145 Industrial Way, Costa Mesa.
City Attorney Harp announced that the City Council would adjourn to Closed Session to
discuss the item listed on the Closed Session agenda and read the title.
III. CLOSED SESSION - Council Chambers Conference Room
A. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
(Government Code § 54956.8): 1 matter
Property: 145 Industrial Way, Costa Mesa, CA 92627.
City Negotiators: Seimone Jurjis, Assistant City Manager and Lauren Wooding Whitlinger, Real
Property Administrator.
Negotiating Parties: Steve Sprenger and Jack McNutt of Newmark.
Under Negotiation: Instruction to City negotiators regarding price and terms of purchase.
IV. RECESSED - 4:04 p.m.
V. RECONVENED AT 4:30 P.M. FOR REGULAR MEETING
VI. ROLL CALL
Present: Mayor Noah Blom, Mayor Pro Tem Will O'Neill, Council Member Brad Avery, Council Member
Robyn Grant, Council Member Lauren Kleiman, Council Member Joe Stapleton, Council
Member Erik Weigand
VII. CLOSED SESSION REPORT
City Attorney Harp reported that no reportable actions were taken.
VIII. INVOCATION - Reverend Canon Cindy Evans Voorhees, St. James Episcopal Church
IX. PLEDGE OF ALLEGIANCE - Mayor Blom
X. PRESENTATION
• Recognition of Outgoing Board, Commission and Committee Members
Mayor Blom utilized a slide to recognize all outgoing Board, Commission and Committee Members,
noted that many of the members could not attend the meeting due to other commitments, and presented
Certificates of Recognition to Arlene Greer and Meghan McNulty, former City Arts Commissioners.
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Janine Eggers, Assemblymember Diane Dixon's Office, thanked Arlene Greer and Meghan McNulty
for their service on the City Arts Commission and presented Meghan McNulty with a Certificate of
Recognition and Arlene Greer with a Resolution.
Meghan McNulty relayed her experience serving on the City Arts Commission and encouraged the
community to get involved with the City.
Arlene Greer thanked Council and the City for the opportunity to serve on the City Arts Commission
and wished Council the best of luck.
Council Member Stapleton: acknowledged Tom Houston for his years of service on the Water
Quality/Coastal Tidelands Committee.
XI. NOTICE TO THE PUBLIC
XII. CITY COUNCIL ANNOUNCEMENTS AND ORAL REPORTS FROM CITY COUNCIL ON
COMMITTEE ACTIVITIES
Council Member Kleiman:
• Attended a Sober Living Task Force meeting for an update on the State audit and an Aviation
Committee meeting
Council Member Stapleton:
• Congratulated the Newport Beach Chamber of Commerce for hosting the State of the County with
Supervisors Wagner and Foley and recognized the good work of the Lifeguard Operations Division
and Public Works Department during the busy summer months
Council Member Grant:
• Attended the Exchange Club of Newport Beach meeting to provide a City update and animal shelter
presentation, a friend. -raiser for the Balboa Island Historical Museum, a groundbreaking for the
Hoag Hospital Irvine Campus, and a Newport Beach Film Festival UK Honors film screening
Council Member Weigand:
• Attended the Movie in the Park at Mariners Park and thanked staff for their work
• Announced Fire Chief Boyles' participation in the RV Demolition Derby at the Orange County Fair
Council Member Avery:
• Discussed sailing in the harbor and commended Harbormaster Blank and staff for their helpfulness
and professionalism
Mayor Pro Tem O'Neill:
• Participated with Mayor Blom in the mac and cheese eating contest at Cappy's Cafe ; to raise
awareness for the Make -A -Wish Foundation
• Toured the rentable cottages at Crystal Cove and discussed the arrangement with the cottages and
the City
• Announced the Finance Committee Special Meeting on July 26, 2023 to discuss the water and sewer
rate studies, the Newport ; Beach Historical Society's 100 Years of Newport Beach Lifeguards
celebration, and the Newport Beach Police Department National Night Out at Bonita Canyon
Sports Park on August 1, 2023
• Wished his wife happy anniversary
XIII. PUBLIC COMMENTS ON CONSENT CALENDAR
Jim Mosher referenced the Grants and Donations Report for the Quarter Ending June 30, 2023
(Item 6) and noted the list did not include the benefits to the public and what the Council Member
expected to achieve.
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XIV. CONSENT CALENDAR
1. Minutes for the July 11, 2023 City Council Meeting [100-2023]
Waive reading of subject minutes, approve as written, 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 ADOPTION
3. Ordinance No. 2023-12: Amendment to the Newport Village Planned Community
Development Plan to Allow Recreational Uses Within Area 1 (PA2023-0071) [100-2023]
a) Fund the adoption of this ordinance not a project subject to the California Environmental Quality
Act (CEQA) in accordance with Section 21065 of the California Public Resources Code and
Sections 15060(c)(2), 15060(c)(3), and 15378 of the California Code of Regulations` Title 14,
Division 6, Chapter 3 (CEQA Guidelines). The proposed action is also exempt pursuant to CEQA
Guidelines Section 15061(b)(3), the general rule that CEQA applies only to projects, which have
the potential for causing a significant effect on the environment; and
b) Conduct second reading and adopt Ordinance No. 2023-12, An Ordinance of the City Council of
the City of Newport Beach, California, Approving an Amendment to the Newport Village Planned
Community (PC-27) Development Plan to Allow Recreational Uses Within Area 1 (PA2023-00 71).
Mayor Blom recused himself from Item 3 due to real property interest, conflicts.
CONTRACTS AND AGREEMENTS
4. Reimbursement Agreement with the Orange County Water District Related to
Groundwater Treatment Facilities (C-9377-1) [381100-2023]
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 a reimbursement agreement for Per- and polyfluoroalkyl substances (PFAS) Treatment
Facilities and Program Agreement (Reimbursement Agreement) among other groundwater
producers, and the Orange County Water District (OCWD) for reimbursement funding for the
City of Newport Beach to develop, construct, operate, and maintain groundwater treatment
facilities, and authorize the City Manager to execute all documents to become a party to the
Agreement.
5. Approval of Purchase Order for the Purchase and Delivery of Sodium Hypochlorite [I00-
2023]
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 City Manager to approve a purchase order for the purchase and delivery of sodium
hypochlorite from JCI Jones Chemical, over the current and next two fiscal years, up to a total
amount of $750,000.
MISCELLANEOUS
6. FY 2022-23 Annual District Discretionary Grant Report and the Grants and Donations
Report for the Quarter Ending June 30, 2023 [I00-2023]
a) Determine this action is exempt from the California Environmental Quality Act (CEQA)
pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action
will not result in a physical change to the environment, directly or indirectly; and
b) Receive and file.
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7. Acceptance of Department of Homeland Security Operation Stonegarden Grant Funds
[100-20231
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) Accept the Department of Homeland Security Operation Stonegarden Grant in the amount of
$62,000; and
c) Approve Budget Amendment No. 24-010 to increase expenditure appropriations by $52,000 in
the Detective Division Overtime account, 01035355-713002-G2420; and $10,000 in the Detective
Division Special Department Expense account, 01035355-841046-G2420.
8. Tourism Business Improvement District Annual Report and Fiscal Year 2023-24 Budget
[100-20231
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) Authorize a waiver of the timeline provided in Section 3.5 of the Tourism Business Improvement
District Management Agreement;
c) Review and approve the Newport Beach Tourism Business Improvement District's FY 2023-24
Annual Report; and
d) Review and approve the Newport Beach Tourism Business Improvement District's FY 2023-24
Budget.
9. Pulled from the Consent Calendar
Motion by Mayor Pro Tem O'Neill, seconded by Council Member Kleiman, to approve the
Consent Calendar, except the item removed (Item 9); and noting the recusal by Mayor Blom to Item 3.
The motion carried unanimously.
XV. ITEM REMOVED FROM THE CONSENT CALENDAR
9. Visit Newport Beach, Inc. FY 2024 Destination Business Plan Supplement and Budget,
and FY 2023 Performance Standards Report [100-20231
Mayor Pro Tem O'Neill stated that he called Gary Sherwin and Debbie Snavely of Visit Newport
Beach, Inc., who shared budget information on community relations (page 9-9), event marketing
(page 9-32), and an umbrella organization for the culinary community that he thought Council
should be involved in because it sounded like a restaurant BID (business Improvement District). He
was informed that it was for the purpose of catering for specific clients and special events.
Additionally, they discussed compensation and noted their non-profit status, the need for
transparency due to funding support using taxpayer money, a growing $7 million budget, trouble
finding organizational salary information online, and his request for salary details. He noted that
2021 tax returns for Visit Newport Beach, Inc. are available through ProPublica and include salaries
and benefits for officers, directors, and trustees, which should have been included in the budget
details provided to the City. He relayed the compensation for the President and CEO and suggested
a discussion about salaries and benefits during the next contract negotiation, and requested that a
supplemental budget with salary and benefit information come back to the City Council at a future
meeting.
Mayor Blom thanked Mayor Pro Tem O'Neill for pulling the item for discussion.
Motion by Mayor Pro Tem 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) review, receive and file the FY 2024 Newport
Beach & Company Destination Business Plan Supplement; c) receive and file the Visit Newport
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Beach, Inc. Leisure Marketing (TOT) FY 2023 Performance Standards Report; and d) review and
approve the Visit Newport Beach, Inc. Leisure Marketing (TOT) FY 2024 Budget.
The motion carried unanimously.
XVI. PUBLIC COMMENTS ON NON -AGENDA ITEMS
Ryan Farsai spoke about the homeless situation in Newport Beach and asked Council for a plan to
resolve the issue.
XVII. PUBLIC HEARINGS
10. Resolution. No. 2023-42:.Appeal of a Limited Term Permit for the Aeronutronic Ford
Soil Vapor Remediation (PA2022-0180) [100-20231
The following ex parte communications were announced:
• Council Member Kleiman announced she spoke with the Ford consultant
• Council Member Stapleton announced he spoke with Kenn Connor of WSP Earth and
Environment
• Council Member Grant announced she attended a Zoom conference call with the Ford consultant
• Council Member Weigand announced he received an email but took no action; however, he met
with Ford and their consultant on a Water Quality Board issue long before this item arose .
• Mayor Pro Tem O'Neill announced he met with Mike Barnes and Kenn Connor from WSP Earth
and Environment
Deputy Community Development Director Campbell and Assistant Planner Tran discussed the
shared interest in addressing the Volatile Organic Compounds (VOC) and the project location being
the reason for the appeal. They utilized a presentation to review a map of the former Ford
aeronutronic facility location, background, vicinity map, project description, location of the proposed
Soil Vapor Extraction (SVE) and treatment system, plan view, design, City actions and appeals, and
recommendations.
Mayor Blom opened the public hearing.
Kenn Connor, applicant and Senior Vice President of WSP Earth and Environment, utilized a
presentation to introduce members of WSP and representatives from the Santa Ana Regional Water
Quality Control Board and Bayridge Homeowners Association (HOA) and reviewed the key points,
94 Hartford Drive ownership change, vicinity map, impacted residents map, Bayridge Park SVE
System, alternative and location analyses, key responses to comments and questions, current and
future permit applications, and community outreach, feedback, and support.
Kevin Solomita, appellant, relayed that his family sold the 94 Hartford Drive property and utilized
a presentation to highlight the examples given to them by WSP of SVE systems in residential areas,
concerns relative to the alternatives, responsible parties to ease the burden of this matter, alternate
locations for the SVE, and the proposed location.
In response to Council Member Weigand's question, Kenn Connor explained the cleaning method
and safety considerations using a repetitive carbon changing process to meet South Coast Air
Quality Management District (SCAQMD) standards for acceptable exhaust levels. Additionally, he
pointed out that the concern is isolated to the exhaust coming from the building, noted there could
be thousands of SVE examples close to residents, the appellant sold their home, and relayed that
purchasing the home was not considered because of conversations with the regulatory agency, the
permitting timeline, and it would not render it any safer than it is right now.
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Council Member Grant acknowledged residents' concerns and stated the number one issue is safety.
In response to her questions, Mr. Connor indicated being unable to speak with the new property
owners after WSP's attempt to make contact and the sale included a full disclosure of the matter.
He explained that the process began at the beginning of COVID-19, discussed challenges of meeting
with Southern California Edison (SoCal Edison), the power drops and impact on the building
location, getting power to the building across Bison Avenue, available energy, and delays for SoCal
Edison upgrades. He stated that the moratorium is controlled by the City, no vapor intrusion was
detected from the indoor air testing on the second floor above the garage at 94 Hartford Drive, indoor
air testing is unknown for the other objecting residents who reside on the second floor, the garage
adds a safety barrier to vapor intrusion exposure, and noted that there is support from the 168
homes in the community. Mr. Connor stated that the Ford facilities are currently the most
investigated soil vapor intrusion issue in the United States and WSP has studied each parcel at the
direction and guidance of the Water Quality Board to ensure a complex review of what is happening
at the site. He noted an extensive investigation in this location, other HOAs, and parcels that will
lead to other SVE action in other parcels and explained the mechanism behind the vapor intrusion,
reasons for increased risk factors, safety based on the presence of the vapor in the vadose zone, why
this area is higher, long term exposure risks, and a disclosure including the remediation activity
when homes were initially purchased.
Lee Healy stated she was never apprised of the chemical dumping on the property when she
purchased her land in 1985 and noted health issues for residents near the proposed location.
Enrique Sanchez, Bayridge HOA President, discussed the high noise levels of air purifiers, safety
issues coming from the ground versus the SVE building, the health risk of not getting the SVE
system in place, and added that no negative comments were received from over 70 of the
168 residents.
Ryan Farsai discussed area satellite images he reviewed, the VOC movement and path, and
recommended that Council approve the permit and stop the VOCs from going into the Bay.
Larry Cano indicated that the first time he heard of the VOCs was in 2018, noted his medical issues
that might be related, expressed safety concerns for living near the SVE site, and asked Council to
take a pause to assess if this is the right thing to do so others are not subject to potential harm.
Jim Mosher discussed reasons for sharing ex parte communications, indicated it was still unclear
about how much power is needed for the equipment, and thought there may be confusion about what
was meant by the matter getting worse with time.
Mayor Pro Tem O'Neill noted that from the findings that supported the Limited Term Permit in
Exhibit A and the conditions of approval in Exhibit B, he found no statement that he disagreed with,
which led to his decision to deny the appeal. He stated that he understands the homeowners'
frustrations, apologized, and indicated that moving forward is legally the right thing to do.
Kevin Solomita noted his opposition to the location of the SVE, not to the treatment itself, discussed
HOA email contacts and responses, pointed out that the Planning Commission did not agree with
the power drop, took issue with the SVE locations provided to him when data and residential
examples were requested, stated it is not right to put it three feet from anyone's home, which is why
he is fighting for the change even though he no longer owns the property, and stated that monitoring
is not in real time.
Hearing no further testimony, Mayor Blom closed the public hearing.
Mayor Pro Tem O'Neill noted that he shared his thoughts earlier because he thought public
comment was closed and stated that while he appreciates the discussion, his comment still stands.
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Council Member Kleiman stated that nothing about this situation is ideal, noted mitigation efforts
have been ongoing for years, thought Ford's consultants have done the necessary due diligence and
community engagement, and expressed being sufficiently satisfied with no viable alternate location
for the facility and negligible exterior risk that is substantially less than the conditions existing
inside the homes. She noted that the remediation efforts cannot afford to be delayed any longer.
Council Member Weigand agreed with the statements by Mayor Pro Tem O'Neill and Council
Member Kleiman, and supported denying the appeal. In response to his request, City Attorney Harp
confirmed that Council can waive the appeal fee set forth in the fee resolution.
Mayor Pro Tem O'Neill agreed to the idea of waiving the appeal fees.
Council Member Grant suggested waiving the fees associated with both appeals.
City Attorney Harp confirmed that all appeal fees would be waived.
Motion by Mayor Pro Tem O'Neill, seconded by Council Member Weigand, to a) find this
project exempt from the California Environmental Quality Act (CEQA) pursuant to Section
15330/Class 30 (Minor Actions to Prevent, Minimize, Stabilize, Mitigate or Eliminate the Release
or Threat of Release of Hazardous Water or Hazardous Substances), under Section 15308/Class 8
(Actions by Regulatory Agencies for Protection of the Environment), and under Section 15303/
Class 3 (New Construction or Conversion of Small Structures) 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; b) adopt Resolution No. 2023-42, A Resolution of the City Council of the
City of Newport Beach, California, Denying an Appeal and Upholding the Decision of the Planning
Commission to Approve a Limited Term Permit for a Soil Vapor Extraction and Treatment System
Located at 94 Hartford Drive [NH] (PA2022-0180); and c) waive the appeal fees and, if already
collected, return the fees.
The motion carried unanimously.
11. Resolution No. 2023-43: Intent to Override Airport Land Use Commission Finding of
Inconsistency for Newport Place Planned Community Amendment (PA2023-0082) [100-
2023]
The item was pulled from the agenda.
12.Ordinance No. 2023-13: An Amendment to Newport Place Planned Community
Development Plan to Revise the Minimum Affordability Housing Percentage of the
Residential Overlay (PA2023-0082) [100-2023]
Mayor Pro Tem O'Neill and Council Member Stapleton recused themselves due to real
property interest conflicts related to the Pacific Club.
Deputy Community Development Director Campbell utilized a presentation to review the Newport
Place residential overlay map, proposed amendment details, and previous review actions.
In response to Council Member Avery's question, Deputy Community Development Director
Campbell confirmed that the City has learned from the consultant studies that the market cannot
support the current percentage and 15% is financially feasible using the density bonus provisions
and eliminates an impediment to housing production. However, he agreed that lowering the
percentage will make it harder to reach the affordable housing State mandated goals.
In response to Council Member Grant's question, Deputy Community Development Director
Campbell relayed that the City does not have a Citywide inclusionary housing requirement and the
percentage only applies to the noted geographic area in the Newport Place Planned Community.
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Mayor Blom opened the public hearing.
Jim Mosher expressed concern for meeting the goals of the Regional Housing Needs Assessment
(RHNA) by changing the affordable housing percentage to 15% and suggested keeping the
percentage at 30%.
Hearing no further testimony, Mayor Blom closed the public hearing.
Council Member Avery noted the challenges to meet the state housing mandate, expressed doubt
that the goals will be met, and thought the market will decide.
Motion by Council Member Weigand, seconded by Council Member Kleiman, to a) find the
Amendment is not subject to CEQA pursuant to Sections 15060(c)(2) (the activity will not result in
a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the
activity is not a project as defined in Section 15378) of the CEQA Guidelines because it has no
potential for resulting in physical change to the environment, directly or indirectly; and b) waive
full reading, direct the City Clerk to read by title only, introduce Ordinance No. 2023-13, An
Ordinance of the City Council of the City of Newport Beach, California, Approving Newport Place
Planned Community Development Plan Amendment to Revise the Minimum Affordability Housing
Percentage of the Residential Overlay (PA2023-0082), and pass to second reading on August 22, 2023.
With Mayor Pro Tern O'Neill and Council Member Stapleton recusing themselves, the
motion carried 5-0.
13. Resolution Nos. 2023-44 and 2023-45: Collection of Certain Sewer and Recycling Fees and
Charges Through the Property Tax Roll [100-20231
Mayor Pro Tem O'Neill recused himself due to real property interest conflicts.
Deputy Finance Director Gomez utilized a presentation to review the background, fee collection
difficulties, fiscal year 2022-23 collections, and staff recommendations.
Mayor Blom opened the public hearing.
Jim Mosher questioned why CR&R cannot skip an address that is delinquent on a collection fee.
Hearing no further testimony, Mayor Blom closed the public hearing.
Motion by Council Member Stapleton seconded by Council Member Kleiman, 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. 2023-44, A
Resolution of the City Council of the City of Newport Beach, California, Confirming the Sewer Fee
Report for Fiscal Year 2023-24 and Authorizing Collection of the Fee Through the Orange County
Tax Roll; and c) adopt Resolution No. 2023-45, AResolution of the City Council of the City of Newport
Beach, California, Confirming the Recycling Fee Report for Fiscal Year 2023-24 and Authorizing
Collection of the Fee Through the Orange County Tax Roll.
With Mayor Pro Tern O'Neill recusing himself, the motion carried 6-0.
XVIII. MOTION FOR RECONSIDERATION - None
XIX. ADJOURNMENT - 6:31 p.m.
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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 July 20,
2023, at 4:00 p.m.
Leilani I. Brown
City Clerk
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