HomeMy WebLinkAbout01 - MinutesDecember 12, 2023
CITY OF NEWPORT BEACH Agenda Item No. 1
City Council Meeting Minutes
Regular Meeting
November 28, 2023
I. ROLL CALL — 4:00 p.m.
Present: Mayor Noah Blom, Mayor Pro Tem Will O'Neill, Councilmember Brad Avery,
Councilmember Robyn Grant, Councilmember Lauren Kleiman, Councilmember
Joe Stapleton, Councilmember Erik Weigand
II. INVOCATION — Mayor Pro Tem O'Neill
III. PLEDGE OF ALLEGIANCE — Mayor Blom
IV. NOTICE TO THE PUBLIC
V. CITY COUNCIL ANNOUNCEMENTS AND ORAL REPORTS FROM CITY COUNCIL ON
COMMITTEE ACTIVITIES
Councilmember Stapleton:
• Attended the OASIS Senior Center's Thanksgiving Luncheon and the Central Newport Beach
Community Association meeting with Lieutenant Corey Wolik
• Announced a Newport Beach Chamber of Commerce Town Hall Meeting to discuss the dangers of
Fentanyl on November 29, 2023, with Senator Janet Nguyen, Assemblywoman Diane Dixon,
Orange County Sheriff Don Barnes, and himself
Councilmember Grant: —
• Attended the OASIS Senior Center's Thanksgiving Luncheon
• Recognized the NewporBeach Police Department's Citizens' Police Academy graduates, and the
Public Works Department and Orange Gow ity Waste and Recycling for the free shred, e-waste, and
mulch event
• Announced that the Orange County Transportation Authority (OCTA) completed the I-405
Improvement Project and new lanes will be opened on December 1, 2023
VI. PUBLIC COMMENTS O&WOKSENT CALENDAR
Wr
Councilmember Stapleton requested to be removed from Item 9 (Establishing the Library Lecture Hall
MOU City Council Ad Hoc Committee) due to out -of -country travel commitments.
Jim Mosher noted that parenthetical digits were not placed after numerals which were spelled out in
Item 3 (Allowing Short -Term Mooring License Agreements and Establishing Fair Market Value License
Fees for Offshore and Onshore Moorings) and suggested edits to the Newport Beach Municipal Code
(NBMC); stated that no hotel should be included in Item 4 (Tennis and Pickleball Club at Newport
Beach); pointed out the amendment to the housing rules to allow for housing outside of the 65 decibel
contour is already allowed in Item 5 (Adopting Housing Element Implementation Noise -Related
Amendments); and indicated challenges with reading the NBMC in Item 6 (Adding, Amending, and
Repealing Various Provisions of the Newport Beach Municipal Code), questioned the reason for the
amendments, and encouraged a no vote.
VII. CONSENT CALENDAR
READING OF MINUTES AND ORDINANCES
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1. Minutes for the November 14, 2023 City Council Meeting
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 ADOPTION
3. Ordinance No. 2023-17: Allowing Short -Term Mooring License Agreements and
Establishing Fair Market Value License Fees for Offshore and Onshore Moorings
a) Determine this action is exempt from the California Environmental Quality Act (CEQA)
pursuant to Section 15302 under Class 2 (Replacement or Reconstruction) of the CEQA
Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential to
have a significant effect on the environment; and
b) Conduct second reading and adopt Ordinance No. 2023-17, An Ordinance of the City Council of
the City of Newport Beach, California, Adding Section 17.60.045 (Short -Term Mooring Licenses)
to Chapter 17.60 (Harbor Permits and Leases) of the Newport Beach Municipal Code Regarding
Short -Term Mooring Licenses.
4. Ordinance Nos. 2023-18 and 2023-19: Tennis and Pickl Club at Newport Beach -
1602 East Coast Highway (PA2021-260) (C-9465-1)
a) Find that the adoption of Ordinances No. 2023-18 and 2023-19 are consistent with the
Addendum to Mitigated Negative Declaration No. ND2010-008 under the California
Environmental Quality Act (CEQA), as adopted per Resolution No. 2023-69;
b) Conduct second reading and adopt Ordinance No. 2023-18, An Ordinance of the City Council of
the City of Newport Beach, California, Approvin,5' an Amendment to the Newport Beach Country
Club Planned Community Development Plan (PC-47) for the Tennis and Pickleball Club at
Newport Beach Located at 1602 East Coast Highway (PA2021-260); and
c) Conduct second reading and adopt Ordinance No. 2023-19, An Ordinance of the City Council of
the City of Newport Beach, California Approving a Development Agreement for the Tennis and
Pickleball Club at Newport Beach Located at 1602 East Coast Highway (PA2021-260).
Councilmember Kleiman use herself to avoid any appearance of bias due to the work
her spouse's company doe
Mayor Pro Tem O'Neill vo ed "no" to Item 4.
5. Ordinance Nos. 2023-20 and 2023-21: Adopting Housing Element Implementation
Noise -Related Amendments (PA2022-0201)
a) Find the adoption of ordinances is exempt from CEQA pursuant to CEQA Guidelines
Section 15183, and within the scope of analysis contained within EIR No. 617, prepared, and
certified by the County for the 2014 JWA Settlement Agreement Amendment, and the
2006 General Plan, as amended;
b) Conduct second reading and adopt Ordinance No. 2023-20, An Ordinance of the City Council of
the City of Newport Beach, California, Approving an Amendment to Title 20 (Planning and
Zoning) of the Newport Beach Municipal Code Related to Noise in the Airport Area Necessary to
Implement the 61h Cycle Housing Element (PA2022-0201); and
c) Conduct second reading and adopt Ordinance No. 2023-21, An Ordinance of the City Council of
the City of Newport Beach, California, Approving Amendments to Newport Place Planned
Community Development Plan (PC-11) and Newport Airport Village Planned Community
Development Plan (PC-60) Related to Noise in the Airport Area Necessary to Implement the 6h
Cycle Housing Element (PA2022-0201).
Councilmember Weigand recused himself due to receiving campaign contributions of over
$250.
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6. Ordinance No. 2023-22: Adding, Amending, and Repealing Various Provisions of the
Newport Beach Municipal Code
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. 2023-22, An Ordinance of the City Council of
the City of Newport Beach, California, Adding, Amending, and Repealing Various Provisions of
the Newport Beach Municipal Code.
RESOLUTIONS FOR ADOPTION
7.
9.
Resolution No. 2023-79: Approval of Measure M2 Expenditure Report
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. 2023-79, A Resolution of the City C uncil of the City of Newport Beach,
California, Concerning the Measure M2 Expenditure Re or the City of Newport Beach for the
Fiscal Year Ending June 30, 2023.
Resolution No. 2023-80: Opposing the By -Right A val Process Language in
Proposition 1, the 2024 Behavioral Health S�rvices Prog nd Bond Measure
a) Determine this action is exempt from the California En mental 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. 2023-80, A Resolution of the City Council of the City of Newport Beach,
California, Opposing the Language in Proposition 1 that Calls for a By -Right Approval Process
for Adult Substance Use Disorder Residential Programs and Recovery Housing to Be Located in
Multi -Family Residential Zones.
Resolution No. 2023-81: Establishing theWbrary Lecture Hall MOU City Council Ad Hoc
Committee .�
a) Determine this action is exempt from the California Environmental Quality Act (CEQA)
pursuant to Sections 15060(c)(2) land 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. 2023-81, A Resolution of the City Council of the City of Newport Beach,
California, Creating an Aa*Hoc Committee to Make Recommendations to the City Council on the
Third Amendment to the Memorandum of Understanding with the Newport Beach Public
Library Foundation Related to Funding the Library Lecture Hall; and
c) Confirm the Mayor's appointments of Mayor Blom and Council Member Kleiman to serve on the
Library Lecture Hall MOU City Council Ad Hoc Committee.
10. Fiscal Year 2023-24 First Quarter Financial Report and Resolution No. 2023-82:
Approving a Side Letter Agreement with the Part -Time Employees Association of
Newport Beach (C-3362), Approving a Fourth Amendment to the Key and Management
Compensation Plan, and Adopting New Salary Schedules
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 and approve the City Manager's recommended adjustments to City of Newport Beach
job classification titles and salary ranges as required by the California Public Employees'
Retirement System in accordance with 2 CCR §570.5 (a)(1);
c) Adopt Resolution No. 2023-82, A Resolution of the City Council of the City of Newport Beach,
California, Approving a Side Letter Agreement with the Part Time Employees Association of
Newport Beach, Approving a Fourth Amendment to the Key and Management Compensation
Plan, and Adopting New Salary Schedules;
d) Approve Budget Amendment No. 24-027, adjusting revenue estimates and expenditure
appropriations for the Fiscal Year 2023-24 budget as outlined in the report; and
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e) Receive and file the report of budget amendments for the first quarter.
CONTRACTS AND AGREEMENTS
11. Newport Coast Drive and Balboa Boulevard Pavement Rehabilitation (Project No. 22R14)
— Notice of Completion for Contract No. 8728-2
a) Approve Budget Amendment No. 24-37 appropriating $9,167.20 in new revenue and expenditures
from Irvine Ranch Water District and appropriating $22,700 in new revenue and expenditures from
Orange County Sanitation District to 13501-980000-22R14;
b) Accept the completed work and authorize the City Clerk to file a Notice of Completion for the
project;
c) Authorize the City Clerk to release the Labor and Materials Bond 65 days after the Notice of
Completion has been recorded in accordance with applicable portions of Civil Code; and
d) Release Faithful Performance Bond one year after acceptance by the City Council.
12. Utilities Yard Office Remodel (Project No. 23F13) — Notice of Completion for Contract
No. 7908-1
a) Accept the completed work and authorize the City Clerk to file a Notice of Completion for the
project; do
b) Authorize the City Clerk to release the Labor and Materials Bond 65 days after the Notice of
Completion has been recorded in accordance xyith applicable portions of Civil Code; and
c) Release Faithful Performance Bond one year after acceptance by the City Council.
13. Fiscal Year 2022-23 Restroom Rehabilitation — Award of Contract No. 8905-2 (23F02)
a) Find this project exempt from the California Environmental Quality Act (CEQA) pursuant to
Section 15301(d), Class 1 (restoration or rehabilitation of deteriorated facilities involving
negligible or no expansion of existing use) of the CEQA Guidelines, because this project has no
potential to have a significant effect on the environment;
b) Approve the project plans and specifications;
c) Award Contract No. 8905-2 to iBuild Spectrum, Inc. for the bid price of $1,200,000 for the
FY 2022-23 Restroom Rehabilitation, and authorize the Mayor and City Clerk to execute the
contract; and
d) Establish a contingency of $180,000 (approximately 15% of total bid) to cover the cost of
unforeseen Work not included intheoriginal contract.
Councilmember Stapleton recused himself due to the proximity of the project to his
primary residence. V
14. Alley Reconstruction (Assessment District 111, Underground Utility District 22 Phase 2
and Assessment District 124 Phase 0 Areas) — Award of Contract No. 8820-2 (23R07)
a) Find this project exempt from the California Environmental Quality Act (CEQA) pursuant to
Section 15301 (repair and maintenance of existing highways and streets, sidewalks, and gutters
involving no expansion of use) of the CEQA Guidelines, because this project has no potential to
have a significant effect on the environment;
b) Approve the project plans and specifications;
c) Approve Budget Amendment No. 24-034 transferring project savings from General Fund CIP
and Neighborhood Enhancement unappropriated fund balance and appropriating $52,972.29 in
increased expenditures in Account No. 01201927-980000-231107 and $200,496.14 in increased
expenditures in Account No. 53601-980000-23R07;
d) Award Contract No. 8820-2 to Grigolla & Sons Const. Co. Inc. for the total bid price of
$3,481,384, and authorize the Mayor and City Clerk to execute the contract; and
e) Establish and encumber a contingency of $175,000 (approximately 5% of the bid) to cover the
cost of unforeseen work not included in the original contract.
15. Lease Agreement with Newport Harbor Lawn Bowling Association for a Portion of
San Joaquin Hills Park Located at 1550 Crown Drive North (C-1498A)
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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;
b) Authorize the City Manager and City Clerk to execute the Lease Agreement by and between the
City of Newport Beach and Newport Harbor Lawn Bowling Association, for continued use of a
portion of the property known as San Joaquin Hills Park located at 1550 Crown Drive North, in
a form substantially similar to the agreement attached to the staff report; and
c) Approve a waiver of City Council Policy F-7 — Income and Other Property based on the findings
contained in this staff report and the lease agreement, that conducting an open bid process or
changing the tenant would result in excessive vacancy, and the use of the property provides an
essential or unique service to the community and is of a public benefit, and might not otherwise
be provided where any open bid or full fair market value rent of the property be required.
16. Annual Reports on Development Impact Fees and Development Agreements
a) Determine this action is exempt from the California Environmental Quality Act (CEQA)
pursuant to Sections 15060(c)(2) and 15060(c)(3) of otheCQA Guidelines because this action
will not result in a physical change to the environmectly or indirectly; and
b) Receive, review and file the Annual Reports on Dent Impact Fees and Development
Agreements.
MISCELLANEOUS 0/k
17. Budget Amendment to Accept a Check from California Library Literacy Services and
Appropriate Funds to the Library's Fiscal Year 2023-24 Budget
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) Accept a check in the amount of $46,594 from the California Library Literacy Services and
approve Budget Amendment No. 24-031 to increase expenditures by the same amount in the
Literacy accounts.
Motion by Mayor Pro Tem O'Neill, seconded by Councilmember Stapleton, to approve the
Consent Calendar; and noting the "no" � vote by Mayor Pro Tem O'Neill to Item 4, the recusal by
Councilmember Kleiman to Item 4, the recusal by Councilmember Weigand to Item 5, the recusal by
Councilmember Stapleton to Item 13, and the amendments to Items 1 and 9.
The motion carried unanimously.
VIII. ITEMS REMOVED FROM THE CONSENT CALENDAR — None
IX. PUBLIC COMMENTS ON NON -AGENDA ITEMS
Dr. Wesley Smith, Newport -Mesa Unified School District Superintendent, expressed gratitude for City
leadership, City Manager Leung, Police Chief Cartwright, and Fire Chief Boyles.
X. PUBLIC HEARING
18. Ordinance No. 2023-23 and Resolution No. 2023-83: Newport Beach Municipal Code and
Local Coastal Program Amendments Related to Short Term Lodging (PA2023-0116)
Mayor Blom recused himself due to real property interest conflicts.
Assistant City Manager Jurjis and Planning Manager Murillo utilized a presentation to review the
background, Planning Commission action, proposed amendments, the mixed -use zoning map,
proposed changes to short term leases in mixed -use zones, the code enforcement program and
the 24-hour hotline phone number, and recommended actions.
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Mayor Pro Tem O'Neill stated that the intent of an eligibility minimum is to draw permits into more
commercial areas versus residential areas. He relayed his intent to make a motion to incorporate
the alternative language to be at 20 units.
Mayor Pro Tem O'Neill opened the public hearing.
Charles Klobe, President of Still Protecting Our Newport (SPON), opposed the proposed approach
and supported a 20-unit minimum.
Jim Mosher questioned why all mixed -use areas are not included, there is a separate 20-unit cap as
opposed to projects with 20 or more units, noted the maximum number of permits, pointed out a cap
increase misprint, suggested the correction read "until the total number is less than ..." for new
permits, and thought the item was not ready for approval.
Denys Oberman supported vacation -serving uses and a well thought out plan to transition into
mixed -use and commercial districts throughout the City, questioned the feasibility of a maximum
cap, noted the lack of a specific plan to reduce the number of Short Term Lodging (STL) permitted
units to correspond with the increase in the mixed -use areas, and expressed concern for it becoming
additive. She suggested reviewing this matter more carefully to ensure effective programming and
unit reductions.
Nancy Scarbrough noted the impact STLs in resi eential neighborhoods have on quality of life and
suggested reviewing the entire ordinance the 53 new housing laws passed in 2023, and the
numerous two-year bills.
Russell Adnoff requested that all STLs be reated equally and the cap be applied to all STLs.
IF
Hearing no further testimony, Mayor Pr4�m O'Neill closed the public hearing.
Mayor Pro Tem O'Neill noted that Council prefers pulling STLs out of residential areas.
In response to Mayor Pro Tem O'Neill's question, City Attorney Harp confirmed that additional
permits would not be granted from the wait list without regard to the cap.
Councilmember F�rant noted tiat the City has been grappling with the impacts of STLs for many
years using several revisions to the approach, and discussed well -managed properties and some that
negatively affect residNits. She stated that it has been a struggle and thought the current revisions
protect the quality of lif6afor residents, ensure proper business administration, and congregate STLs
in commercial and visitor -serving areas; and expressed support for lowering the cap, allowing a
one-time allowance to reinstate a permit, and the elimination of bad operators.
Councilmember Stapleton thanked Mayor Pro Tem O'Neill, staff, and the residents, expressed
support for moving STLs from residential neighborhoods to mixed -use areas, and focusing on 20 or
more units. He noted this as an opportunity for a pilot program and to increase Transient Occupancy
Tax (TOT) revenue and enforcement.
Councilmember Kleiman thanked staff and thought this is a compatible use in these zoning areas,
invites reinvestment and residential zone relief, and allows for better and more accountable
operators. In response to Councilmember Kleiman's questions, Planning Manager Murillo reviewed
the STL permit charges, annual City revenue including TOT, staff support, revoked, suspended, and
closed permits, investigations and citations, and a tracking program that is reviewed at the time of
permit renewal.
In response to Councilmember Avery's question, Planning Manager Murillo reviewed the procedure
for closing a permit for nonpayment of the TOT, the amendment provision for a one-time
reinstatement, ways a permit can be revoked, the time limit to return, and fines.
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Councilmember Avery supported fines for violations, an obligation to avoid STL saturation, parking
challenges in new zones, a need for robust code enforcement, and a mix of permanent housing and
STLs.
In addition to making the motion, Councilmember Kleiman requested that staff come back in the
new year to look at STL permit fees and fines, and a proposal on the allocation of STL revenue to
dedicated and proactive code enforcement efforts for commercial operations in residential
neighborhoods. Mayor Pro Tem O'Neill stated this will be discussed at the planning session in 2024.
Motion by Councilmember Kleiman, seconded by Councilmember Stapleton, to a) find
proposed amendments to the NBMC are not subject to the California Environmental Quality Act
(CEQA) pursuant to Section 15060(c)(2) and 15061(b)(3) of the CEQA Guidelines, because it would
not result in a direct or reasonably foreseeable indirect physical change in the environment and is
covered by the general rule that CEQA applies only to projects which have the potential for causing
a significant effect on the environment; b) waive full reading, direct the City Clerk to read by title
only, introduce Ordinance No. 2023-23, An Ordinance of the City Council of the City of Newport
Beach, California, Approving a Code Amendment to Chapter 5.95 (Short Term Lodging) and
Title 20 (Planning and Zoning) of the Newport Beach Municipal Code Related to Short Term Lodging
(PA2023-0116), and pass to second reading on December 12, 2023; and c) adopt the alternative
resolution that includes a 20-unit ownership requirement, Resolution No. 2023-83, A Resolution of
the City Council of the City of Newport Beach, California, Authorizing Submittal of a Local Coastal
Program Amendment to the California Coastal Commission Amending Title 21 (Local Coastal
Program Implementation Plan) of the Newport Beach Municipal Code Related to Short Term
Lodging (PA2023-0116). 16,
With Mayor Blom recusing himself, the motion c1tMed 6-0.
XI. CURRENT BUSINESS
19. Resolution No. 2023-84: AI
City Clerk (C-7032�
City Clerk Brown recused
a New Salary Range and Adjusting Base Salary for the
ue to potential impacts to her finances.
Human Resources Director SaVni stated the changes to the City Clerk's compensation include a
5% adjustment to the base salary effective December 2, 2023. She noted that a resolution
accompanied the staff'�Veport because the current salary range does not accommodate the 5% base
salary adjustment, and`U�approved, the salary range would adjust to $120,288 for the lower end of
the range to a maximum of $180,419.
Motion by Mayor Pro Tem O'Neill, seconded by Councilmember Grant, 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. 2023-84, A Resolution of
the City Council of the City of Newport Beach, California, Adopting a New Salary Range for the City
Clerk; and c) approve and authorize the Mayor to execute Amendment B to the Seventh Amended
and Restated Employment Agreement for the City Clerk.
With Mayor Blom voting "no," the motion carried 6-1.
20. Appointment to the Board of Library Trustees to Fill an Unscheduled Vacancy
City Clerk Brown reported that the applicant must receive at least four votes to be appointed and
read the ballot votes as follows:
Chase Rief — Avery, Blom, Grant, Kleiman, O'Neill, Stapleton, Weigand
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City Clerk Brown announced that Chase Rief was appointed to fill the unscheduled vacancy on the
Board of Library Trustees that expires June 30, 2025.
XII. MOTION FOR RECONSIDERATION - None
XIII. ADJOURNMENT - Adjourned at 5:01 p.m. in memory of Peter Sabatino and Lysanne
Sebastian
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
November 22, 2023, at 4:00 p.m.
Leilani I. Brown
City Clerk
Noah B119
Mayor
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