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HomeMy WebLinkAbout01 - Minutes - AmendedFebruary 27, 2024 CITY OF NEWPORT BEACH Agenda Item No. 1 City Council Meeting Minutes Special Meeting - Planning Session February 3, 2024 I. CALL THE MEETING TO ORDER - 9:00 a.m. Roll Call Present: Mayor Will O'Neill, Mayor Pro Tem Joe Stapleton, Councilmember Noah Blom, Councilmember Robyn Grant, Councilmember Lauren Kleiman, Councilmember Erik Weigand Absent: Councilmember Brad Avery Invocation - Councilmember Grant Pledge of Allegiance - Councilmember Blom Mayor O'Neill thanked everyone in attendance and City Manager Leung revie)yed the meeting agenda. II. UPDATE ON FINANCIAL STATUS AND BUDGET DEVELOPMENT - Finance Director Al -Imam utilized a presentation to review the fiscal year 2024-25 preliminary General Fund revenue outlook, property tax revenue over the years, revenue by category, residential sale trends, and sales tax revenue over the years for major industry groups. In response to Mayor O'Neill's question, Finance Director Al -Imam utilized the presentation to review the graph showing the sales tax revenue by year with trends and projections by major industry group. Mayor O'Neill noted that revenue was down in auto and transportation and flat for consumer goods. Finance Director Al -Imam continued with the presentation to review Transient Occupancy Tax (TOT) revenue over the years, commercial and residential TOT revenue with an 8% growth this year and about a 2.5% growth next year for hotels, the TOT revenue outlook, and other revenues. Mayor O'Neill relayed that the Finance Committee will use the references from the presentation as a base model for the upcoming budget, and in response to his questions, Finance Director Al -Imam stated that the second quarter will be discussed in February and revenues for the next fiscal year will be discussed in March. Mayor O'Neill indicated that the March discussion will also include how all the revenues are being projected, which will factor intp how the budget will be created by the City Manager. In response to Councilmember Weigand's reference to the decline in commercial property tax, Finance Director Al -Imam explained that the data is received from the County Aeessessor's Office and preliminary data based on sales and evaluation numbers through December 31, 2023 has been received and overall growth is projected. He indicated that he is not sure of the expected decline number to date. Councilmember Weigand noted that this market is struggling. City Manager Leung noted that residential property tax is the City's solid base revenue. In response to Mayor Pro Tem Stapleton's question, Finance Director Al -Imam noted short-term lodging (STL) increases in 2021-22, permit counts have been above the threshold for a couple of years, there was a dip below the threshold for the first time a few months ago, a reduction in permits by 200 in the last two years, and being at the cap now. City Manager Leung stated that data is received only once a year for individual STL permits which poses a challenge to determine the trend, and proposed a more frequent collection to assist with forecasting. Councilmember Grant noted the current 1,550 STL permit count is down from over 1,600. City Manager Leung indicated that the City Council set a cap at 1,550 STL permits, additional permits for mixed -use need to go to the California Coastal Commission, the count was over 1,600 then dipped below 1,550 which allowed permits on the waiting list to get in, and a waitlist does exist. Volume 66 - Page 31 City of Newport Beach Planning Session February 3, 2024 III. LONG RANGE PLANNING — CAPITAL IMPROVEMENT PROGRAM (CIP) Public Works Director Webb utilized a presentation to discuss the CIP, how projects are selected, prior Council goals and priorities, and City planning documents; and highlighted the Pavement Management Plan and the asphalt pavement life cycle. In response to Mayor O'Neill's question, Public Works Director Webb clarified the funding for the slated and backlogged projects and noted that staff will be asking for an increase in the CIP budget to l,--$8.5 million. Public Works Director Webb continued with the presentation to continue discussions about the Pavement Management Plan and to review the Facilities Financing Plan (FFP) and reserves. Mayor O'Neill stated that lately bids are higher than numbers in the FFP and asked if the FFP amounts need to be increased. Public Works Director Webb stated that all the costs per square foot in the presentation were adjusted, and the FFP is a planning document that is used to create a budget document. Mayor O'Neill expected more development in the airport area and thought it would be an appropri-tte action to begin transferring more money from the General Fund to the FFP to make sure costs are offset goingherforward. City Manager Leung agreed and noted that very little is building the reserves, the fund is reliant on development agreements, and staff is coming to Council in late March to discuss development impact fees. I response to Mayor O'Neill's questions, City Manager Leung confirmed that the Library Lecture Hall has al ady been backed out of the $25 million in FFP reserves. Public Works Director Webb slated that the Balboa Island Drainage Project is coming from the $6 million in the CIP, is about $20 million, will span multiple years, and is not included in the FFP. Finance Director Al -Imam noted that the Balboa Island Drainage project is anticipated to come out of the FFP fund even though it is not in the FFP. % It Public Works Director Webb continued with the presentation to review the Facilities Maintenance Master Plan, Harbor and Beaches Master Plan, and Park Maintenance Master Plan. in City Manager Leung expressed concern for rising costs related to the Balboa Island Seawall Replacement in the Harbor and Beaches Master Plan. Public Works Director Webb noted that the increase in linear foot costs for walls is reflected in the table. City Manager Leung stated it was prudent to start including required contributions to ensure full funding. In response Ito Mayor O'Neill's question, Public Works Director Webb estimated the project to be a 10 to 15 year replacement period. Mayor O'Neill forecasted at least $13 million per year for the project and stated that setting aside funds would be helpful for future Councils. Public Works Director Webb continued with the presentation to review the Park Maintenance Master Plan. Mayor O'Neill stated he was surprised that the City needed to do more in the Park Maintenance Master Plan, but was surprised aboutihe amount and indicated that the amount needs to be increased over the next four years. Councilmember Kleiman commended the previous Council for doing the park audit and hoped audits can be included in the long-term plan. Mayor O'Neill agreed and noted the City has 250 acres of park space. Recreation and Senior Services Director Levin invited the public to participate in a survey and to a meeting on February 13, 2024, at 4:30 p.m. to discuss the San Miguel Park all-inclusive playground project. In response to Councilmember Kleiman's question, Recreation and Senior Services Director Levin shared that the neighbors wanted more lighting at Bob Henry Park, but while he thought redoing it would be nice, he did not feel there were safety concerns. In response to Mayor Pro Tem Stapleton's question, Recreation and Senior Services Director Levin relayed that the maintenance for Buck Gully is through a different contract. Public Works Director Webb continued with the presentation to review the building of the FY 2024-25 CIP budget pursuant to the estimates and suggested projects to focus on. Mayor Pro Tem Stapleton expressed an interest in looking into doing something at Lower Castaways and the feasibility of creating a West Newport Beach Community Center maybe in the area of the Avon Street parking lot, Newport Theater Arts Center, and John Wayne Park. Volume 66 - Page 32 City of Newport Beach Planning Session February 3, 2024 Mayor O'Neill stated that a fresh perspective for Lower Castaways would be helpful and suggested creating an ad hoc committee consisting of Mayor Pro Tem Stapleton, Councilmember Blom, and Councilmember Grant at an upcoming City Council meeting. Regarding a West Newport Beach Community Center, he indicated that this project would be a longer discussion but worth looking into. In response to Councilmember Kleiman's interest, City Manager Leung relayed that the City is not actively looking at acquiring land for centralized parking structures at this time. Councilmember Weigand suggested that the ad hoc committee pay close attention to the high traffic and egress at Lower Castaways. Public Comments Nancy Scarbrough asked if the tidelands report anticipates an increase in revenue due to mooring fee increases, noted that the Bicycle Master Plan has not been reviewed in 10 to 15 years and new mobilities are not in the plan that should be considered, such as, vertical takeoff&chicles at the airport, and stated that the Americans with Disabilities Act (ADA) is a law as is relates to arks Master Plan and asked if potential vulnerable areas have been considered. In response to Mayor O'Neill's question, Finance Director Al -Imam stated that no assumptions have been made on mooring rate increases. Mayor O'Neill noted that updating the Bicycle Master Plan would require that a Councilmember request a future agenda item to create an ad hoc committee. Public Works Director Webb noted the City meets current ADA compliance when it does upgrades. Recreation and Senior Services Director Levin confirmed that all playgrounds are ADA compliant. IV. BUDGET DEVELOPMENT — PROGRAMS AND SERVICES LEVELS Finance Director Al -Imam utilized a presentation to discuss the FY 2024-25 preliminary General Fund expenditure outlook and pension paydown strategy. Mayor O'Neill noted that the surplus amount was considered for the pension paydown strategy and would be discussed again in May or June. Councilmember Weigand noted the 6.5% target assumption for Ca1PERS and Finance Director Al -Imam relayed a 4% return through December and stated their outlook is not as bright as it should be. City Manager Leung indicated that the final rate of return is from June 30, 2023. Finance Director Al -Imam utilized a presentation to discuss the FY 2024-25 preliminary capital funding outlook. City Manager Leung noted that program enhancements are being reviewed, inflationary pressures are considered, and the impovnce of enhancing the capital infrastructure to build for the future. In response to Mayor O'Neill's question, City Manager Leung stated that the budget does not take into account increased technology uses at the Police Department, nor is staff ready for a discussion because work is in progress with the ad hoc committee. She noted that the idea is to meet with the ad hoc committee, hold a study session, and propose items into the budget which will have costs associated. In response to Councilmember Kleiman's questions, Finance Director Al -Imam explained that the 2% increase for salaries and benefits includes a one-time allocation that is not going to flow into the budget for police recruitments, and reported that, while the net increase is 2%, the reality is a 3% overall impact. City Manager Leung pointed out that the City only budgets for what is in the negotiated agreements and known increases. Assistant City Manager Jurjis and Code Enforcement Supervisor Murray utilized a presentation to discuss the Code Enforcement budget and staffing, the number of cases in 2023, and types of enforcement. In response to Councilmember Kleiman's question, Code Enforcement Supervisor Murray stated that the code cases are organized by Newport Beach Municipal Code (NBMC) Sections and Chapt itle 5 includes violations for STL properties and would show up in the STL section. Volume 66 - Page 33 City of Newport Beach Planning Session February 3, 2024 Assistant City Manager Jurjis and Code Enforcement Supervisor Murray continued the presentation to discuss the commercial businesses in residential neighborhoods and the proactive enforcement proposal. Councilmember Kleiman expressed concern for an effective allocation of staff resources. Assistant City Manager Jurjis relayed that staff schedules are staggered for peak times and days, and Code Enforcement Supervisor Murray reviewed the employee scheduling and enforcement approach. Councilmember Weigand expressed concern that the City may be shifting to a proactive approach, noted his appreciation for the reactive approach, and expressed an interest in adding recovery residences. Assistant City Jurjis clarified that the majority of Code Enforcement's duties are reactive, and due to insufficient staffing, staff will focus on the areas noted in the proactive list. Assistant City Manager Jurjis collected a consensus for a proactive approach for STLs. Councilmember Weigand clarified his support for scouring the internet for illegal STLs. Assistant City Manager Jurjis and Code Enforcement Supervisor Mur&Vcontinued the presentation and discussed resources to enforce issues related to beach vendors, refuse, JXLs, fee recovery options, and STL permit fee comparisons. Councilmember Kleiman supported changing fees to be market rate, raising the bar, and encouraging better operators. In response to her question, City Manager Leunotindicated that TOT goes into the General Fund, is not a restricted fund, STL pays into the TOT, and staff will conduct a penalty fine survey with other cities. Mayor O'Neill expressed an interest in conducting a Propo, ition 187 analysis to ensure that the fees are in line and it makes sense. � 1M Councilmember Grant suggested phasing any fee increase and being considerate when raising enforcement fees. City Manager Leung relayed that the fee schedule goes to the Finance Committee and then to the City Council for adoption. Councilmember Kleiman asked if other Councilmembers have an interest in adding more police presence to address quality of life issues by expanding the Homeless Liaison Officer and Peninsula Enforcement Team programs to Corona del Mar and Newport Centel. Councilmember Blom expressed support. Mayor O'Neill expressed interest in finding out if the Police Chief finds it warranted, stated this would be part of the budget discussion, and suggested a study session to discuss it. Library Services Director Hartson and Library Services Manager Lightfoot utilized a presentation to discuss cultural arts, current progrfins, funding sources, program expenditures, and proposed projects. Councilmember Grant noted that it is important to understand that the biggest part of the cultural arts budget is for the sculpture exhibition and the money budgeted for it is a pass -through amount and not part of the City Arts Commission's budget. She thought that the Council needs to decide if it will continue providing support because it technically is a City operation. Mayor O'Neill supported giving Council the discretion to determine the number of phases if the funds are a pass -through. Further, he stated there should be a holistic view of the City's needs, including Police Department and Code Enforcement needs, sculpture changes every two years, a budget that places emphasis on Citywide efforts, grant funding done by the private sector, and a sculpture garden every two or three years. He indicated he did not think the funding was a pass -through, pointed out that CIP projects are the priority, opposed a budget increase, supported decreasing the largest expenditure, and welcomed the opportunity to have the Council make the decisions. Councilmember Grant thought this is an important discussion to get feedback from the Council, noted that the pass -through represents the minimum amount of money to replace the sculptures and no discretion is in place, expressed a need to reevaluate the commitment to the sculpture garden, grant funding, and the vetting process for programming, and thought the sculpture collection at the Civic Center is a priority and the Arts Foundation should not be relied upon to supplement necessary programming, such as the sculpture collection and concerts. Volume 66 - Page 35 City of Newport Beach Planning Session February 3, 2024 In response to Councilmember Weigand's questions, Library Services Director Hartson stated that professional services fluctuate depending on the maintenance needs and timing, thought that there was an opportunity to look at lengthening the time that sculptures are in the park, discussed the impact on the sculptures from beach elements, and indicated there could be cost savings and guideline changes. Councilmember Weigand stated he opposes wrapping utility boxes and supported working with the private sector for an increased awareness of what the sculpture garden does for the community and donation opportunities. In response to City Manager Leung's suggestion to come back with options to move forward with the sculpture garden, Mayor O'Neill suggested that the City Arts Commission provide Council with options. Councilmember Grant suggested that the City Arts Commission offer opportunities for public funding and recognition of the sculpture garden as an incentive. Public Comments Nancy Gardner stated that she is not a fan of public funding for the arts(nd noted that the City is a wealthy community and only $10,000 is funded by the Newport Beach TArts Foundation. Nancy Scarbrough asked who takes financial responsibility for the emergency services provided to residential care facilities, are the expenses for Fire and Pglice services eligible for reimbursement by the facility, and if the Fire Medics Program is billed to facilities as a business. Additionally, she questioned if other costs for employment are being considered when converting part-time positions to full-time. Jim Mosher noted that the pension liability paid down in the next eight years is dependent on CalPERS' results, questioned code enforcement efforts relative to gas leaf blowers; discussed the diversion rate in residential areas, the requirement not to contaminate the black carts with organic material, and refuse enforcement obligations, and questioned if the refuse working group is still meeting; and suggested reviewing and updating City Council Policy I-10, Financial Support for Culture and Arts. Mayor O'Neill clarified that he �is no cu ently on the working group and it no longer exists. City Attorney Harp stated that State law requires the City to treat licensed six and under residential care facilities the same as any other residential use and Code Enforcement is in that context, including paramedic services and the Fire Medics Program which is a fee based service for transportation to the hospital and billed at the residential rate, not as a business. r City Manager Leung acknowledged the additional costs associated with changing from part-time to full-time employee status, n*d pension plan benefit requirements after 1,000 work hours, stated the pension formula is lower with PEPRA, employees are paying a considerable amount towards their contributions, and people are seeking full-time work so consistency and long term employees are factors in the discussion. V. PUBLIC COMMENTS ON NON -AGENDA ITEMS Nancy Gardner noted that the State certified the City's Housing Element which calls for twice the Regional Housing Needs Assessment (RHNA) numbers, encouraged the City to focus on affordable housing, such as work —force housing, senior housing, and starter homes, suggested considering inclusionary zoning, explorin e employer incentives for employee -housing, and supporting the Housing Trust in the City that is focused on affordability. Jim Mosher suggested that the Council review what planning sessions were in the past and what other cities call them, and suggested holding another type of session that includes bigger priorities, such as the airport, homelessness, RHNA, and other issues. Charles Klobe stated that the Newport -Mesa Unified School District 7-11 Committee is tasked with determining what to do with the land near the City yard. He announced that the committee will meet on February 5, 2024, and encouraged the City to take an interest in what happens to the property. Volume 66 - Page 36 City of Newport Beach City Council Meeting February 13, 2024 Assistant City Manager Jurjis emphasized the schedule is tight. Mayor O'Neill agreed but noted Council's ability to call a special meeting. Principal Planner Zdeba continued the presentation to review accountability in nearby cities, announce that documents are available for review at newportbeachca.gov/heimplementation and newportbeachca.gov/ceqa and comments are due by 5:00 p.m. on March 28, 2024, and share the key takeaways and deadlines. Jim Mosher noted that paper copies of the EIR are at City Hall and all libraries. He stated that November 5, 2024 will be three years into the current eight -year Regional Housing Needs Assessment (RHNA) cycle and questioned housing production, did not think there has been progress in affordable housing development, noted that the airport area is generating less than 10% affordable housing compared to the total housing being approved, suggested that anyone with similar properties in an overlay district should be eligible for the overlay, and thought there would be a cap on the number of overlays in the event the City met its RHNA number. f Larry Tucker hoped that overlays in District 4 at Newport Center are thoughtfully planned and noted the uniqueness of the area, relayed that Charter Section 423 does not apply to zoning changes that are due in February 2025 to implement the Housing Element, reviewed height limits and density in Newport Center, and suggest he City and property owners work together to create a plan. Nancy Scarbrough suggested developing language regarding the housing development cap for the community. r vw Debbie Debra Allen Moore thanked Coircil for recognizing the Newport Center view ordinance from 1958 and expressed support for reserving it. In response to Mayor O'Neill's question, Assistant City Manager Jurjis agreed to craft more language in the Land Use Element or Zoning Code to address the cap on housing production. In response to Councilmember Weigand's question, Assistant City Manager Jurjis expressed an interest in staying on track with the schedule and engaging with property owners about height discussions after the November election. Councilmember Weigand thought that Newport Center is a focal point and needs to be master -planned. Councilmember Blo�thanked staff, opposed placing caps in the airport area and Newport Center, supporte�evelopment where the natural curve exists and protecting neighborhoods, and thought height is the only way to be in compliance with the State and constraints add obstacles to move forward. Additionally, he noted that the City has its own caps with land costs and willing developers. Councilmember Kleiman thanked staff. Councilmember Avery appreciated the work that has been done on this and the residents should be thankful, and thought the City needs to meet the deadlines. In response to his questions, Assistant City Manager Jurjis stated there is interest from property owners, projected a minimum of 20-years for a full build -out, and noted that the Land Use and zoning overlays are not yet adopted. Councilmember Avery concurred with Mayor Blom's interest in protecting neighborhoods, expressed concern for the rate of change, and supported the long timeline. Councilmember Grant summarized her understanding of a Citywide sunset provision once the RHNA units are met and questioned the approach for capping individual areas. Assistant City Manager Jurjis relayed the direction from the Housing Committee and Council to accommodate a maximum number of units for total build -out, excluding density bonus. He stated that staff will need Vie -further direction to-st-aff-if Council wants to change the total build -out. Volume 66 - Page 39 City of Newport Beach City Council Meeting February 13, 2024 III. PUBLIC COMMENTS ON AGENDA AND NON -AGENDA ITEMS Laura Curran announced that the Navigator is available and highlighted that there will be a tour of the native plants at the Civic Center Park on April 11, 2024. She also stated that Sherman Gardens is having a Native Plant Day on April 21, 2024, and there will be a garden tour on May 5, 2024. An unidentified speaker inquired about the process for changing ordinances and opening a homeless shelter in the City since all the shelters are currently full. Mayor O'Neill directed questions regarding City ordinance changes to the City Attorney and suggested reviewing past discussions regarding City homeless shelter efforts. Jim Mosher clarified that he suggested a Citywide "off -switch" once the lea City as a whole developed all of the required RHNA. He also suggested increased oversight of the organic waste diversion from landfills because he found it unlikely that the three -cart program is reaching a 91% diversion. Councilmember Grant recused herself from Closed Session Item IV.A to avoid an appearance of bias. M IV. CLOSED SESSION — After Study Session — Council Chambers Conference Room ELVA A. CONFERENCE WITH REAL PROPERTY NEGOTIATORS (Government Code § 54956.8): 1 matter Property: 883 W. 15th Street, Newport Beach, CA 92 — APN: 424-011-37. City Negotiators: Seimone Jurjis, Assistant City Manager, and Lauren Wooding Whitlinger, Real Property Administrator. Negotiating Parties: David Bahnsen for Pacifica Christian High School — Orange County. Under Negotiation: Instruction to City Negotiators regarding price and terms of payment. V. RECESSED — 5:06 p.m. VI. RECONVENED AT -;MP.M. FOR REGULAR MEETING VII. ROLL CALL Wy Present: Mayor Will O'Neill, Mayor Pro Tem Joe Stapleton, Councilmember Brad Avery, Councilmember Noah Blom, Councilmember Robyn Grant, Councilmember Lauren Kleiman, Councilmember Erik Weigand VIII. CLOSED SESSION REPORT City Attorney Harp announced that no reportable actions were taken. IX. INVOCATION — Reverend Matthew Hambrick, First United Methodist Church of Costa Mesa X. PLEDGE OF ALLEGIANCE — Councilmember Weigand XI. NOTICE TO THE PUBLIC XII. CITY COUNCIL ANNOUNCEMENTS AND ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES Volume 66 - Page 40 City of Newport Beach City Council Meeting February 13, 2024 Mayor O'Neill stated that an audit from the State of California resulted from poor oversight and tourism spending in Anaheim, suggested that staff look at the auditor checklist for compliance, and questioned what the new organization is and how it will interact with the organization that receives taxpayer money. He discussed Newport Beach and Company (NB & Co.) and Visit Newport Beach (VNB), funding, executive board placement and compensation, and noted that $2.9 million of the City's tax money is spent without the City's management. He questioned if the new organization is standalone or administered by a taxpayer organization with oversight. In response, City Attorney Harp explained that the new organization is going to be a nonprofit, private organization, with voluntary membership among different hotels in the City who will collect their own funding without the City being involved. He suspected there will be some overlap with the entities receiving taxpayer dollars. In response to Councilmember Weigand's questions, City Attorney Harp stated that it has been made clear to the new organization, and they have been put on notice, that charges on hotel bills cannot be presented in a way that the consumer believes the charges on the bills are City fees or taxes and the private organization has been directed to consult with their own legal counsel. He indicated that there will be no oversight by the City, although he thought the organization would provide the City with a copy of the format of the bills upon request to ensure that the charges do not look like City fees or taxes. 0 In response to Mayor O'Neill's question, City Atto ey Harp clarified that audit rights exist until the end of 2024 for the VNB owner's association t anages the Tourism Business Improvement District (TBID). In response to Councilmember Grant's question, City Attorney Harp stated that the Meeting Assessment Partnership (MAP) is its own entity and suspects there will be an overlap with existing entities who are performing the same tasks. She expressed concern for diluting the money being paid by the City. City Attorney Harp restated Mayor O'Neill's interest in forming a Council ad hoc committee to look at the agreement terms to ensure the money is being appropriately spent. Mayor O'Neill stated that VNB exists solely to market Newport Beach and expressed concern for administrative costs, indicated he had no problem moving forward with Item 4 but thought the questions were worth asking and answersrneed to be found out. He added that it would be a problem if the City were to pay for overhead when the nonprofit is not. Jim Mosher noted that MAP members are being allowed to continue to use the "TBID" term on guest folios, discussed the motivation for being part of the TBID, and expressed concern for transferred TBID funds. Laura Curran annouiXed there will be a public hearing on this matter on March 26, 2024, urged Council to review the finances, and asked what will happen with the 3% annual assessment. Gary Sherwin, President and CEO of VNB, stated that TBID was created for the purpose of group marketing efforts and sunsets at the end of January. He noted there was a meeting with hotels to brainstorm about what to do with TBID upon its expiration and relayed that the decision was to have contracts that replicated TBID, list the fee as a tourism marking fee that would get passed through the consumer to VNB, and have governance by the assessed businesses. In response to Mayor O'Neill's questions, Mr. Sherwin explained that MAP contracts with VNB to provide services for group marketing, VNB is the management entity for MAP, charges allocated to MAP are for group sales efforts, and the TBID will be the same as it has always been. He relayed the reasons why the City does not have oversight over the TBID and noted that the governance of MAP is reliant on the hotels that fund it and the contract is with NB & Co. that receives $2.9 million from the VNB. He clarified that the TBID i€is for group marketing and the Transient Occupancy Tax (TOT) is for overall marketing, stated TBID's sole focus was to enhance group marketing, relayed no specific amount is charged to NB & Co. for MAP services because the costs are contained within MAP, and disclosed he will not have an employment agreement with MAP because MAP contracts with NB & Co. He added that the initiative was driven by the hotel community and its Volume 66 - Page 44 City of Newport Beach City Council Meeting February 13, 2024 Councilmember Kleiman stated she was encouraged that the City would engage with a new partner to address gaps, but suggested pairing the agreement back to a one-year term with the option for two subsequent one-year extensions. In response to City Manager Leung, Melanie McQueen, Regional Director of PATH, agreed in principle to Councilmember Kleiman's amended terms. Councilmember Kleiman stated the reason for the requested change is to allow the City to have a checkpoint and revisit the scope of work at the end of the one-year mark. She indicated she is not insinuating there are anticipated issues. In response to Mayor O'Neill's question, City Attorney Harp suggested giving general authority to the City Attorney's Office to make the modification consistent with the proposed terms. Councilmember Grant expressed appreciation for staff and the new partnership, and relayed a fluid process. f Melanie Martin requested greater accountability for safety during the time between when the information is obtained about the unhoused and their placement. 1 Mayor O'Neill pointed out that there will also bepensation changes resulting from the term changes. I Motion by Councilmember Kleiman, seconded by Councilmember Weigand, 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 an amended Professional Services Agreement with PATH for Homeless Outreach Services that reflects a change to the term of the agreement to a one-year term with an option for two one-year extensions and a change in compensation to reflect the modified term and any other necessary changes related, thereto, as approved by the City Attorney, and authorize the Mayor and City Clerk to execute the agreement. The motion carried unanimously. XVII. PUBLIC COMMENTS ON NON -AGENDA ITEMS jW Jessie Fleming requested protection for her neighborhood, stated she lives on a boat and acts as the eyes and ears on the Harbor; Wted an upcoming proposal to increase the mooring fee by 400%, and asked Council to be fair so everyone can work together to support the Harbor. Kelsey McCallister provided a handout, relayed the story of Wanda the Whale, and sought the Council's guidance on how to commemorate Wanda. Chris Benzen expressed concern that there are different mooring fee rates for the same submerged tidelands use, shared mooring fee increases, and suggested passing a resolution to use the State Lands Commission's rates. Adam Leverenz reviewed the Brown Act and provided his interpretation, expressed concern for the lack of Council's attendance at the Harbor Commission's special meeting, and encouraged Council to attend the upcoming meeting or listen to the public comments and presentation to collect all the facts. Cathy Gilbert extended an invitation to attend the Love Newport Leaders Gathering in the Friends Room on February 29, 2024 at noon, provided a handout, and noted that a group prays at the Civic Center on Thursdays regularly and prays for the Council. Mike Fleming expressed concern for mooring fee increases. Volume 66 - Page 46