HomeMy WebLinkAbout01 - MinutesApril 23, 2024
CITY OF NEWPORT BEACH Agenda Item No. 1
City Council Meeting Minutes
Study Session and Regular Meeting
April 9, 2024
I. ROLL CALL — 4:00 p.m.
Present: Mayor Will O'Neill, Mayor Pro Tem Joe Stapleton, Councilmember Brad Avery,
Councilmember Noah Blom, Councilmember Robyn Grant, Councilmember Lauren Kleiman
Excused: Councilmember Erik Weigand
II. CURRENT BUSINESS
SS1. Clarification of Items on the Consent Calendar — None
SS2. Proclamation Recognizing National Library Weep
Mayor O'Neill read the proclamation and presented it to Paul Watkins, Chair of the Board of
Library Trustees, and Library Services Director4%rtson who thanked Council for their support.
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SS3. Presentation of Insurance Services Office (ISO) ss I Public Protection
Classification to the City of Newport Beach
Andy Bolton, Verisk ISO Senior Fire Protection Analyst, and Jim Hughes, Underwriting
Solutions ISO Field Representative, utilized a presentation to discuss the ISO public protection
classification, 503 Class 1 graph countrywide, fire suppression rating schedule, items evaluated
and how the information affects 'nsurance policies. He concluded by presenting a plaque to
Fire Chief Boyles and the CityAo .
V1
Fire Chief Boyles recognize Fire arshal Gillespie for leading the evaluation and the Newport
Beach Fire Department.
SS4. Presentation to the Carnegie MecTal Recipient
Mayor O'Neill announced that the presentation will be continued to a future City Council
meeting.
SS5. Discussion Regardin the Balboa Yacht Basin
Councilmember Stapleton announced that he will be recusing himself due to a
financial relationship with a client who owns property adjacent to the subject
property.
Assistant City Manager Jurjis and Real Property Administrator Wooding Whitlinger utilized a
presentation to discuss the request for proposal (RFP) for the Balboa Yacht Basin, project
description, existing condition and uses, tidelands boundaries, current rent revenues, the
Facilities Financing Plan (FFP), the two proposals, and the proposal snapshot.
In response to Mayor O'Neill's questions regarding Proposal 2 from Basin Neighborhood
Partners, LLC, Assistant City Manager Jurjis relayed that the lease structure would be between
the City and the homeowner for each parcel, the developer would sell the ten units, the City
would gain the rights to own the offices and the Galley Cafe buildings, the Galley Cafe and
offices would have a lease with the City, and the dry storage on the 40 units will belong to the
City.
Assistant City Manager Jurjis continued with the presentation to review the entitlement
process, agency comparisons, and next steps.
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In response to Mayor O'Neill's question, staff indicated that there are currently 32 storage units
in Burnham Ward Properties' proposal (Proposal 1).
Ryan Rhoads, Burnham Ward Properties, reviewed the company's background, the proposal,
and examples of properties renovated by them.
Kevin Hayes, Basin Neighborhood Partners, LLC, introduced his wife, Alice Herren Hayes, and
son, Kevin Hayes, Jr., and reviewed their proposal, parking and traffic requirement reductions,
income expectations and revenue estimates, RFP scope, and benefits and challenges of Proposal
2. He expressed confidence in receiving California Coastal Commission (CCC) approval.
Mrs. Hayes noted the neighborhood's character, opportunities, economics, and vision; and Kevin
Hayes, Jr. explained the property ownership concept and the reasoning and benefits for their
proposal to include residential units.
Bill Kenney, representing the Promontory Bay Community Association, expressed an interest
in a collaborating with the City and developer.
Paul Fruchbom stated that tenants will relay that the existing uses for the buildings referenced
in the RFP should not be changed, suggested the amenity is better run for the benefit of the City
rather than a for -profit developer, and parking is under parked
Brian White, Galley Cafe owner, expressed an interest in working with the Council and asked
to be a part of the process. 10
Chris Webb thought there is a lack of public engagement with the current tenants, noted that
the garages are essential, suggested althird proposal be considered to only conduct a minor
renovation of the existing structures, re uested that a specific scope for the existing structures
and related costs be identified, and encouraged Council to take a pause, engage in community
and tenant outreach, and review the RFP and proposals from the community's perspective.
Adam Leverenz expressed concerns for eliminating residences, the ground lease amounts, the
semi -subterranean garages and water tables, office space availability, and omitting the boaters
from having a say.
Cindy Paulsen inquired about the height of the two proposals versus the existing heights and
what is planned for the storage unit on the end closest to Beacon Bay in Proposal 1. She
expressed concern for the street proximity to her home in Proposal 2 and limited parking near
the Galley Cafe.
Wade Womack asked that the City keep the buildings, thought that both proposals appear to
increase the intensity of use, noted the similar existing and potential revenue opportunities and
current good balance of use, and suggested a third proposal for a remodel and creating a
nonprofit.
Kathleen Anderson, Balboa Basin Yacht Club Commodore, noted parking issues and thought
that the yacht club would get chased away if everything is rebuilt.
Dave New, Basin Marine Shipyard owner, offered to work with the City on the proposals and
noted the impacts of Proposal 2 on his business.
An unidentified speaker from Basin Marine Shipyard expressed an interest in working with the
community on the project and supported renovating the existing buildings.
Ken Rinker, representing the Promontory Bay Community Association, expressed concerns for
the impacts to their neighborhood by changing the Balboa Yacht Basin and the importance of
parking.
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George Garrett asked that the community component be considered and pointed out that slip
tenants make a difference.
Debra Huse asked Council to consider the rehabilitation idea as a third proposal.
Councilmember Blom noted that the proposals were from local developers, restated the original
intent of the RFP, discussed the City's approach to facility maintenance, the difference between
government versus private spending, the desire to maintain City icons, pointed out that ten
single-family homes does not add anything to the City, and emphasized the Council's goal of
having the best and highest use to the most amount of people who have the ability to enjoy it.
In response to Mayor O'Neill's question, Assistant City Manager Jurjis explained how the City
defines a building's useful life, the impact to the buildings over time, the cost effectiveness for
the City to tear the buildings down and build them brand new, and sewer line corrosion.
Additionally, he indicated that the building height is about 24 feet in Proposal 1 based on the
elevation view, up to 29 feet in Proposal 2 based on the section view compared to the existing
height of 24 feet, and the storage unit will be maintained in Proposal 1 and eliminated in
Proposal 2 to create driveway access to the proposed parking lot. Mayor O'Neill assured that the
boating community will be included in the consi ations. Assistant City Manager Jurjis relayed
that the next step would be to hold a town hall Seeting to discuss project amenities and address
concerns, and then the item will return to Council with a lease eement.
Councilmember Aver noted how difficult it can be to have thins o away that have been in
Y g g Y
place for some time, shared the marina storage history after WWII and the current lack of
marina storage, the City marina is a good deal and is used a lot, Proposal 1 limits social
gatherings, discussed the benefits of having a garage in the basin, and noted that more outreach
is needed. He suggested looking into the feasibility of rehabilitating the area and hanging on to
the community aspects and, if,.this is not possible, then the City should get the maximum
revenues from the land and bring the Von4nunity together to identify what is best for the people
emotionally invested in the area.
Councilmember Grant thanked staff for their work on the matter and members of the public for
participating, understood the importance of preserving the culture and heritage of the marine
community, and stated being encouraged by the input received. Though she thought that both
proposals are world -class, she expressed disappointment for not receiving more proposals. She
expressed an interest in including more public use and stated that she is looking forward to
more to come on this matter.
In response to Councilmember Grant's question, City Attorney Harp indicated the Council could
move forward legally with the proposals that were received. Real Property Administrator
Wooding Whitlinger noted that the two proposals are all the City received and there are limited
options to seek additional responses. Councilmember Grant was surprised by the small response
considering the property is a gem and possesses so much opportunity.
Councilmember Kleiman supported staffs recommendation and thought the narrow scope of the
RFP produced a limited number of proposals.
Mayor O'Neill noted that this was not an area that was contemplated for new housing in the
General Plan and suggested more community input on storage size and count in Proposal 1 and
reviewing the end of useful life matter to consider its impact to the Capital Improvement Plan
(CIP). He reviewed the next steps, suggested another public discussion as part of the CIP
process, and proposed moving forward with Proposal 1 with the next steps being community
engagement and the option for staff to begin working through deal terms.
Following a straw vote, Mayor O'Neill, Councilmember Blom, Councilmember Grant, and
Councilmember Kleiman expressed support for Proposal 1.
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III. PUBLIC COMMENTS ON AGENDA AND NON -AGENDA ITEMS
Bill Kenney, Newport Harbor Foundation, announced a State of the Bay luncheon on May 15, 2024, at
the Newport Harbor Yacht Club(www.newportharborfoundation.org).
IV. RECESSED — 5:45 p.m.
V. RECONVENED AT 5:51 P.M. FOR REGULAR MEETING
VI. ROLL CALL
Present: Mayor Will O'Neill, Mayor Pro Tem Joe Stapleton, Councilmember Brad Avery,
Councilmember Noah Blom, Councilmember Robyn Grant, Councilmember Lauren Kleiman
Excused: Councilmember Erik Weigand
VII. INVOCATION — Councilmember Grant
r_.
VIII. PLEDGE OF ALLEGIANCE — Councilmember Kleiman
IX. NOTICE TO THE PUBLIC ,
X. CITY COUNCIL ANNOUNCEMENTS AND ORAL REPORTS FROM CITY COUNCIL ON
COMMITTEE ACTIVITIES
Councilmember Kleiman:
• Read stories during National Library Week's Storytime at the Corona del Mar Branch Library
• Attended the Orange County Council of Governments (OCCOG) Annual Conference, the public dock
ribbon cutting, the Corona del Mar Residents Association (CdMRA) Annual Meeting, the Southern
California Association of Governments (SLAG) Board and Regional Policy meetings, and the
Newport Beach Police Department (NBPD) Mobile Cafe at the Corona del Mar Farmers Market
• Announced that the Aviation Committee meeting that was schedule for April 15, 2024, is postponed
do
Councilmember Ave
• Attended the Wa r juality/Coastal Tidelands Committee meeting and the OASIS Senior Center
Board of Advocates meeting
Councilmember Grant:
• Attended the NBPD Mobile Caf6 and the 3rd Annual Women Making a Difference Award Breakfast
• Utilized a slide to announce the Adopt a Pet event on April 20, 2024, at the Newport Beach Animal
Shelter
• Congratulated the Newport Beach Fire Department for achieving the Class 1 recognition
• Announced that she will also be participating in Storytime at the library on April 10, 2024 for
National Library Week
Mayor Pro Tem Stapleton:
• Reported going on a ride -along with Sgt. Matson through Area 1
• Attended the public dock ribbon cutting, the CdMRA meeting, and the Newport Beach Chamber of
Commerce scholarship event
• Toured Balboa Village with Code Enforcement
• Announced that he will be participating in Storytime at the library on April 10, 2024 for National
Library Week
Mayor O'Neill:
• Attended the Eastbluff PTA meeting, public dock ribbon cutting, OASIS Senior Center food delivery
with Age Well, and the Mayor's Youth Council's final meeting for the school year
• Announced there will be a Finance Committee meeting on April 11, 2024
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• Utilized a slide to announce that the City is accepting applications to receive Community Program
and Special Events Grants
XI. PUBLIC COMMENTS ON CONSENT CALENDAR - None
XII. CONSENT CALENDAR
READING OF MINUTES AND ORDINANCES
1. Minutes for the March 26, 2024 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. 2024-7: Terminating One Non -Exclusive Franchise Agreement for
Commercial Solid Waste
a) Determine this action is exempt from the California Enkironmental 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. 2024-7, An Ordinance of the City Council of
the City of Newport Beach, California, Ter inating One Non -Exclusive Franchise Agreement for
Commercial Solid Waste.
RESOLUTIONS FOR ADOPTION
4. Resolution No. 2024-20: Accept State of Califolnia, Department of Parks and Recreation,
Division of Boating and Waterways Grant for the Marina Park Boating Program (C-8858-
3)
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. 2024-20, A Resolution of the City Council of the City of Newport Beach,
California, Authorizing Acceptance of Grant Agreement C8968327 Between the State of
California Departmenl,of Parks and Recreation, Division of Boating and Waterways and the City
of Newport Beach for Reimbursement of the Cost for Replacement Items, Adaptive Sailing
Equipment, Scholarships for the Marina Park Boating Program, and Instructor Training;
c) Authorize the City Manager to sign and execute the Grant Agreement and subsequent related
documents as may be related to the reimbursement of the cost for the adaptive sailing equipment
and replacement items for the Marina Park Boating Program; and
d) Approve Budget Amendment No. 24-066 to record and appropriate in grant revenue from the
State of California Division of Boating and Waterways to Marina Park - Marina Park Sailing
account 0107023-561086 and in expenditure appropriations to Marina Park - Equipment NOC
account 0107023-911024.
5. Resolution No. 2024-21: Amending City Council Policy F-1 (Statement of Investment
Policy)
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. 2024-21, A Resolution of the City Council of the City of Newport Beach,
California, Amending City Council Policy F-1 (Statement of Investment Policy) Deleting
Language Regarding Investment in the Los Angeles County Investment Pool, and Deleting
Redundant Language Regarding Adoption Date.
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April 9, 2024
CONTRACTS AND AGREEMENTS
6. 2021-2022 Tide Gate Improvement Project - Notice of Completion for Contract No. 7999-
1 (19D03)
a) Accept the completed work and authorize the City Clerk to file a Notice of Completion for the
project;
b) Authorize the City Clerk to release the Labor and Materials Bond 65 days after the Notice of
Completion has been recorded in accordance with applicable portions of Civil Code; and
c) Release Faithful Performance Bond one year after acceptance by the City Council.
Councilmember Blom recused himself from Item 6 due to real property interest conflicts.
7. Amendment No. 1 to Professional Services Agreement with Aquatrax LLC for Web -based
Customer Water Use Software (C-8885-1)
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 environmen&, directly or indirectly; and
b) Approve Amendment No. One to the Professional Services Agreement with Aquatrax, LLC for
web -based customer water use software, extending the contract term to April 30, 2027, and
increasing the total agreement compensation by $250,000, ar�d authorize Mayor and City Clerk
to execute the Agreement.
8. Approval of Amendment No. One to Maintenance/Re air Services Agreement for Weed
pp P g
Abatement Services with Natures Image, Inc. (Contract No. 8537-1)
a) Determine this action is exempt from the California Environmental Quality Act (CEQA)
pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action
will not result in a physical change to the environment, directly or indirectly; and
b) Approve Amendment No. One to the Maintenance/Repair Services Agreement with Natures
Image for weed abatement' services with a three-year extension and an additional
not -to -exceed amount of $560,000 for a total not -to -exceed amount of $2,534,933.24 and
authorize the Mayor and City Clerk tooeexecute the amendment.
9. Continuance of Franchise Termination Proceeding for Key Disposal & Recycling, Inc. to
the May 14, 2024 City Council Meeting
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) Continue the franchise termination proceeding for Key Disposal & Recycling, Inc. to the
May 14, 2024 City Council meeting.
MISCELLANEOUS
10. General Plan Update Steering Committee (GPUSC) Bi-Monthly Update to the City
Council
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 the report.
Motion by Mayor Pro Tem Stapleton, seconded by Councilmember Kleiman, to approve the
Consent Calendar; and noting the recusal by Councilmember Blom to Item 6 and amendments to
Item 1.
With Councilmember Weigand absent, the motion carried 6-0.
XIII. ITEMS REMOVED FROM THE CONSENT CALENDAR - None
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April 9, 2024
XIV. PUBLIC COMMENTS ON NON -AGENDA ITEMS
Amy Senk provided a handout, expressed concern for safety due to two water main breaks causing
flooding to her home, noted her family's displacement for nearly four years, and believed there is no
regard from the City after several pleas for assistance.
In response to Mayor O'Neill's request, City Attorney Harp explained that the City reimbursed
Mrs. Senk's insurance company for payments they made to assist Mrs. Senk's family and reported on
the work being done by the City to add protections against further water main breaks.
Adam Leverenz stated that the proposed mooring fee increase is substantially more than the State
Lands Commission's benchmark rates for Orange County, the City's pier permit fees, and the CBRE
mooring rate appraisal, and took issue with the proposed mooring fee increase.
XV. PUBLIC HEARINGS
11. Ordinance Nos. 2024-8 and 2024-9 and Resolution NoIr2024-22 and 2024-23: Approving the
Residences at 1400 Bristol Street Project; and Resolution No. 2024-24: Overriding Orange
County Airport Land Use Commission's Dete ination of Inconsistency (PA2022-0296)
(C-9243-2)
Mayor O'Neill opened the public hearing.
Jim Mosher questioned the lower fees in the development agr ement and inquired about the General
Plan policy to develop a more walkable airport area. M&
Hearing no further testimony, Mayor O'Neill closed the public hearing.
Mayor O'Neill stated that he reviewed thk eraff report and supported the park fee reduction
for this matter and Item 12.
Motion by Mayor O'Neilliseconded by Mayor Pro Tem Stapleton, to a) adopt Resolution
No. 2024-22, A Resolution of the City Council of the City of Newport Beach, California, Adopting
Addendum No. 7 to th 2006 General Plan Update Program Environmental Impact Report and 2008-
2014 City of Newport Beach Housing Element Update Initial StudylNegative Declaration for the
Residences at 1400 Bristol Street Project Located at 1400 Bristol Street (PA2022-0296); b) adopt
Resolution No. 2024-23, A Resolution of the City Council of the City of Newport Beach, California,
Approving a General Plan Amendment, Site Development Review, Affordable Housing
Implementation Plan and Traffic Study for the Residences at 1400 Bristol Street Project Located at
1400 Bristol Street (PA2022-0296); c) waive full reading, direct the City Clerk to read by title only,
introduce Ordinance No. 2024-8, An Ordinance of the City Council of the City of Newport Beach,
California, Approving a Planned Community Development Plan Amendment for the Residences at
1400 Bristol Street Project Located at 1400 Bristol Street (PA2022-0296), and pass to second reading
on April 23, 2024; d) waive full reading, direct the City Clerk to read by title only, introduce
Ordinance No. 2024-9, An Ordinance of the City Council of the City of Newport Beach, California,
Approving a Development Agreement for the Residences at 1400 Bristol Street Project Located at
1400 Bristol Street (PA2022-0296), and pass to second reading on April 23, 2024; and e) adopt
Resolution No. 2024-24, A Resolution of the City Council of the City of Newport Beach, California,
Finding the Residences at 1400 Bristol Project is Consistent with the Purposes of the State
Aeronautics Act and Overriding the Orange County Airport Land Use Commission's Determination
that the Residences at 1400 Bristol is Inconsistent with the 2008 John Wayne Airport Environs Land
Use Plan (PA2022-0296).
With Councilmember Weigand absent, the motion carried 6-0.
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12. Ordinance Nos. 2024-10 and 2024-11 and Resolution Nos. 2024-25 and 2024-26: Approving
the Residences at 1401 Quail Street Project; and Resolution No. 2024-27: Overriding
Orange County Airport Land Use Commission's Determination of Inconsistency (PA2023-
0040) (C-9285-2)
Mayor O'Neill opened the public hearing.
Jim Mosher questioned how the City determines a proportionate share between the affordable
purchaser and the City, and reviewed the number of new housing units needed to reach the State's
mandated housing goals set for the City.
Hearing no further testimony, Mayor O'Neill closed the public hearing.
Mayor O'Neill noted his comments are the same as stated during Item 11 discussions.
Motion by Mayor O'Neill, seconded by Councilmember Grant, to a) adopt Resolution
No. 2024-25, A Resolution of the City Council of the CityAf Newport Beach, California, Adopting
Addendum No. 8 to the 2006 General Plan Update Program Environmental Impact Report and 2008-
2014 City of Newport Beach Housing Element Update Initial StudylNegative Declaration for the
Residences at 1401 Quail Street Project Located ^ 1401 Quail Street (PA2023-0040); b) adopt
Resolution No. 2024-26, A Resolution of the City Council of the I1ji:ty of Newport Beach, California,
Approving a General Plan Amendment, Site Development Review, Vesting Tentative Tract Map, and
Affordable Housing Implementation Plan for the Residences at 1401 Quail Street Project Located at
1401 Quail Street (PA2023-0040); c) waive full reading, direct the City Clerk to read by title only,
introduce Ordinance No. 2024-10, An Ordinance of the City Council of the City of Newport Beach,
California, Approving a Planned Community Development Plan Amendment for the Residences at
1401 Quail Street Located at 1401 Quail Street (PA2023-0044), and pass to second reading on
April 23, 2024; d) waive full reading, direct the City Clerk to read by title only, introduce Ordinance
No. 2024-11, An Ordinance of the City Council of the City of Newport Beach, California, Approving
a Development Agreement for the Residences at 1401 Quail Street Project Located at 1401 Quail
Street (PA2023-0040), and pass to second reading on April 23, 2024; and e) adopt Resolution
No. 2024-27, A Resolution of the City Council of the City of Newport Beach, California, Finding the
Residences at 1401 Quail Project is Consistent with the Purposes of the State Aeronautics Act and
Overriding the Orange County Airport Land Use Commission's Determination that the Project is
Inconsistent with the 2,008 John Wayne Airport Environs Land Use Plan (PA2023-0040).
With Councilmember Weigand absent, the motion carried 6-0.
X11V. CURRENT BUSINESS
13. Sculpture Exhibition in Civic Center Park — Phase IX (C-9455-1)
Library Services Director Hartson stated that Richard Stein, Arts Orange County President and
CEO, and Nicholas Thurkettle, Program Coordinator, are in attendance.
Mayor O'Neill noted that images of the sculptures were included with the staff report and were also
shown in Stu News Newport.
Councilmember Grant expressed appreciation to the library staff, City Arts Commission, and Arts
OC for providing the community with a wonderful cultural amenity.
Motion by Councilmember Grant, seconded by Councilmember 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; and b) approve 10 sculptures and their placement
and two alternate sculptures within Civic Center Park as selected by the public and recommended
by the City Arts Commission for the temporary sculpture exhibit.
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April 9, 2024
With Councilmember Weigand absent, the motion carried 6-0.
XVII. MOTION FOR RECONSIDERATION - None
XVIII. ADJOURNMENT - 6:22 p.m.
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
April 4, 2024, at 4:00 p.m.
Leilani I. Brown
City Clerk
Will O'Neill
Mayor
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