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HomeMy WebLinkAbout01 - Minutes - AmendedCity of Newport Beach City Council Meeting November 14, 2023 November 28, 2023 Agenda Item No. 1 Services Director Levin indicated that the Newport Beach Municipal Code (NBMC) provides for park operating hours from 6:00 a.m. to 11:00 p.m. Councilmember Weigand expressed concern for a 2:00 a.m. closing at the 19th Street and Balboa Island Fire Station restrooms and thought it should be changed. In response to his inquiries, Public Works Director Webb reported on the need for restrooms at night by boaters, the Marina Park restroom closes at 10:00 p.m., ferry closing hours, and usage of urban restrooms that support a 2:00 a.m. closing time. Councilmember Stapleton supported Councilmember Kleiman's recommendation, the need for immediate action regarding the nighttime closure of all public restrooms in the City, noted positive comments received after the 15th Street restrooms were locked, and stated that every restroom was locked during a Moonlight Monument Tour in Washington, D.C. Councilmember Grant supported providing clear direction for proper use of City property, proactive measures to bring back safety that may be missing in the community, deferred to staff to identify the best path and an interim method for clearing the restrooms. Mayor Blom appreciated the staff report, options, public inpcd supported finding a solution. Councilmember Kleiman proposed that staff return with vendor contracts to manually lock all restrooms nightly from 10:00 p.m. to 6:00 a.m., so th s a clear message that all restrooms are closed nightly. 11 Mayor Blom restated the recommendation to close all bathrooms from 10:00 p.m. to 6:00 a.m., directed staff to coordinate the nighttime closure, and prepare a Request for Proposal (RFP) for service. A straw vote in favor of moving forward with the recommendation was supported unanimously. SS3. Library Lecture Hall 10', Public Works Director Webb and Finance Director Al -Imam utilized a presentation to review the project location, approved concept, project background, current project status, the cost per square foot, total project cost summary, projected annual operational costs, the Newport Beach Public Library Foundation funding contributions, shortfall funding, and temporary gap funding. W In response to Mayor it Tem O'Neill's question, Finance Director Al -Imam confirmed the shortfall funding calculation and approach. Public Works Director Webb utilized the presentation to review next steps. Newport Beach Public Library Foundation Chair Kevin Barlow utilized a presentation to review the Foundation's mission statement, public/nonprofit partnership, the Foundation's role with the Library Lecture Hall, agreed upon need, the Foundation's funding responsibility, donor expectations, full operational control and ownership by the City, the Foundation's request for approval, and an increased Foundation commitment of up to $5-.211.7 million. Jill Johnson -Tucker, Beyond Books Capital Campaign Chair and Chair of the Library Lecture Hall Design Committee, provided a project history, utilized a presentation to review background, programming and attendance statistics, capacity, future program ideas, fees, next steps, and fundraising efforts. She asked that Council accept the low bid. Larry Tucker reviewed the fundraising efforts and pledges, cash flow, costs, asked whether a $23.5 million facility for half price is a worthy bargain and if the City can afford an $11.5 million expenditure for a community auditorium, noted the City's long-term fiscal forecast, debt service expense on the City Hall, the City's large surpluses even with budgeted expenses and liabilities, available funding and borrowing capabilities, interest rates, the want versus need approach, and affordability. He expressed hope that Council will focus on the long run. Volume 65 - Page 654 City of Newport Beach City Council Meeting November 14, 2023 Mayor Pro Tem O'Neill reviewed the project background, a $17 million commitment from the City equaling four times the amount at the project start, population percentage of use, project scale back possibilities, square footage costs, capital reserves, Facilities Financing Plan (FFP) projects, concern for the project's capital costs, use of surplus funds and Neighborhood Enhancement Funding, the current Memorandum of Understanding (MOU), possibly applying a surcharge on ticket sales to offset facility costs, and concern for leveraging to recover the extra $5 million. He expressed appreciation for all the work done on this project and everyone involved but struggled to support it. Councilmember Stapleton recognized the importance of the project, appreciated the public/private partnership, thanked everyone involved, and expressed interest for moving the project forward. He suggested reimagining the original intent and use of the building, reviewed his tour of the Newport Theater Arts Center with Councilmember Avery and future $10 million remodel plan included in the FFP, stated it is not in the City's best interest to build two auditoriums within a certain period, suggested a combined project, and hoped for continued community support. o Councilmember Avery stated being a fan of the project and aware of the runaway building costs, expressed concern for keeping the lecture hall filled to capacity at all times to make it cost-effective, questioned taking the financial risk, hesitated in giving his support, thought the project needs to match the extraordinary community, congratulated everyone involved in the fundraising efforts, and remained concerned about the buildings use and programming. Councilmember Kleiman appreciated the effort behind the project development and fundraising, supported an auditorium for various uses, expressed concern for high estimates and ongoing maintenance costs, the collection of pledges and possible shortfalls, and rising costs of Capital Improvement Projects (CIP) and support staff, and noted her opposition for using taxpayer dollars to fund the 4 project as proposed at this time. Councilmember Grant expressed gratlde to the community, supported moving forward with the community auditorium, concurred with Councilmember Stapleton's suggestion to merge the Newport Theater Arts Center and Library Lecture Hall, recognized creative and innovative ideas, supported expanding the library, and expressed the opinion that it all can be brought together in the existing footprint, the City can afford the project and should make the investment, and delays are cost prohibitive. In response to Councilmember Weigand's question, Public Works Director Webb relayed that approximately $4 illion of American Rescue Plan Act (ARPA) money was swapped with FFP funds for the fue system at the Corporate Yard. Councilmember Weigand wondered if the builder would find the current footprint sufficient to combine the project with the Newport Theater Arts Center, supported building the theater, and expressed concern for bid increases and project logistics and confidence in long-term programming and funding. In response to Mayor Blom's question, Public Works Director Webb stated that the current plans are complete and ready to move forward. Mayor Blom thought that a lot of work and a full plan redesign would be required to assess the project footprint. Councilmember Weigand expressed disinterest in taking actions that make the situation worse, supported the project and combining the two entities, and expressed concern if the lecture hall does not happen soon. Mayor Blom expressed support for improving infrastructure, recognized a long-term vision, supported moving forward with the project, understood the concerns, and thought it was good business to fully utilize the space. Kory Kramer, Eagle Four Partners, supported new investments and the Library Lecture Hall, and asked Council to green light the project. Nancy Gardner supported the Library Lecture Hall project. Volume 65 - Page 655 City of Newport Beach City Council Meeting November 14, 2023 Dennis Baker supported the Library Lecture Hall project. Jeff Cole supported the Library Lecture Hall project. Jim Mosher supported the Library Lecture Hall project and expressed concern for rising costs. Steve Rosansky, President of the Newport Beach Chamber of Commerce, suggested not letting the costs be a deterrent, suggested various uses for the venue, and thought the revenue potential could result in a net positive. Dorothy Larson supported the Library Lecture Hall project. Councilmember Stapleton recommended rejecting the current bid and immediately re-forming the City Council Ad Hoc Library Lecture Hall Committee to create a cultural arts center in Newport Beach. Mayor Pro Tem O'Neill noted the risk of increased costs if another bid occurred, emphasized cost prudency, and supported the creative solutions by Councilmembers Avery and Stapleton. Councilmember Grant supported approving the project and noted I cost for a state-of-the-art facility, community commitment, credibility o e Newport Beach Public Library Foundation, the impact of delays, and a combined effort by its entities. Mayor Blom asked for a straw vote on Councilmember Stapelton's proposal to re-form the City Council Ad Hoc Library Lecture Hall Committee to create a cultural arts center. Mayor Pro Tem O'Neill and Councilmembers Kleiman and Stapleton voted in favor. jr In response to Councilmember Avery's qu stion, Public Works Director Webb reviewed the timeline, project impact, and cost risks if tIR proposal is approved. Councilmember Grant suggested accepting the bids and moving forward to find a compromise within the community to incorporate arts, business, and culture with a separate MOU agreement. Ci Manager Leung relayed that the current MOU with the Foundation needs to be amended to match the dollar amount with the current bid. In response to Councilmember Weigand's question, Mayor Pro Tem O'Neill clarified that a discussion about the amended MOU terms would be needed if the project is approved. Councilmember Avery expressed concern for higher bids and unknown expenses, and interest in providing for flexible uses. A straw vote in favor of moving forward with the project was supported by Mayor Blom and Councilmembers Grant, Avery, and Weigand. In response to City Manager Leung's request for guidance about revising the MOU, Mayor Pro Tem O'Neill reviewed the terms of the current MOU and questioned the dollar percentage the City will be providing and the City's annual financial responsibility for facility maintenance. Councilmember Avery supported having every group using the building to -contribute to the maintenance costs. Larry Tucker reviewed the terms of the MOU, facility income opportunities, parking, questioned facility maintenance contributions from users that already paid $11 million, and supported getting the project done. City Manager Leung suggested bringing the item back at the January 9, 2024 City Council meeting and having the City Council subcommittee work with staff to revise the MOU. Volume 65 - Page 656 City of Newport Beach City Council Meeting November 14, 2023 XVII. PUBLIC COMMENTS ON NON -AGENDA ITEMS — None XVIII. PUBLIC HEARINGS 21. Ordinance Nos. 2023-18 and 2023-19: Tennis and Pickleball Club at Newport Beach at 1602 East Coast Highway (PA2021-260) (C-9465-1) Councilmember Kleiman recused herself to avoid any appearance of bias due to the work her spouse's company does. Assistant City Manager Jurjis and Senior Planner Lee utilized a presentation to review the project location, background, proposed amendment, comparison from the previous iteration to the current proposed plan, project entitlements, the development agreement and public benefit fees. Jonathan Bailey, project manager, utilized a presentation to review the master site plan, summary of the 2012 approved plan and alternate plan, site plans, sou barrier plan, co -ownership, and reasons to approve the project. Mayor Blom stated that while he liked that the lease is signed, he is concerned with pushing back 10 years. In response to his question, Assistant City Manager Jurjis noted that if the project goes forward then there are enough trip counts for another project, and if it goes the other way, the applicant will have to modify the project. Mayor Blom questioned the lack of progress in 12 years and expressed concern for tying up trip counts, the facility, and housing units for 15 years, and noted the applicant's previous disinterest in providing housing units on the property. He indicated his lack of support for the project. In response to Mayor Pro Tem O'Neill's questions, Assistant City Manager Jurjis confirmed that during the one-year extension, a new%roject came forward along with a new development agreement. He confirmed that trips, units, or square footage come out of the statistical area when a development agreement is issued at is tracked for a 10-year period. He added that there has been no discussion of extension fees., Robert O Hill state at grou dbreaking can occur before 2032. In response to Co 'at Weigand's question, Assistant City Manager Jurjis stated that, hypothetically, the interim tennis and pickleball courts can remain until 2032 and noted development agreements aregenerally last for 10 years with one exception for a 15-year development agreeme* to -for the Airport Village project. Mayor Blom opened the public hearing. Jim Mosher questioned the public benefit fee, parking and traffic impacts, the proposed General Plan amendment and impact on Greenlight. Mr. Bailey stated a willingness to return to a 10-year development agreement. Robert Strother supported the alternate plan. Hearing no further testimony, Mayor Blom closed the public hearing. Mayor Pro Tem O'Neill expressed frustration for the time that has passed, the lack of faith that the project will be completed in a timely manner, concern for extending it another 15-years, discussed the extension fee imposed on Hoag Hospital during a similar circumstance, and stated he would like to see other property owners have the opportunity to pursue development projects. Councilmember Grant expressed concern for the time that has passed on the project and a desire to have the project come to fruition. Robert O Hill stated they will take any time that Council will give Volume 65 - Page 663