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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. k 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. Volume 66 - Page 70 City of Newport Beach City Council Meeting April 9, 2024 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. Volume 66 - Page 71 City of Newport Beach City Council Meeting April 9, 2024 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. Volume 66 - Page 72 City of Newport Beach City Council Meeting April 9, 2024 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 Volume 66 - Page 73 City of Newport Beach City Council Meeting April 9, 2024 • 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. Volume 66 - Page 74 City of Newport Beach City Council Meeting 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 Volume 66 - Page 75 City of Newport Beach City Council Meeting 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. Volume 66 - Page 76 City of Newport Beach City Council Meeting April 9, 2024 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. Volume 66 - Page 77 City of Newport Beach City Council Meeting 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 Volume 66 - Page 78