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HomeMy WebLinkAbout01 - MinutesDecember 10, 2024 CITY OF NEWPORT BEACH Agenda Item No. 1 City Council Meeting Minutes Regular Meeting November 12, 2024 I. II. 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, Councilmember Erik Weigand PRESENTATIONS • Proclamation Recognizing Marie Marston Mayor O'Neill read the proclamation and conga Public Works Leaders Award from the Americax Councilmember Grant noted her long-standing as the heartbeat of Newport Beach. on for receiving the 2024 Top 10 ociation. VIs. Marston and referred to her Marie Marston thanked Council for the recognition Trnoted her involvement in over 400 projects for over 60 public agencies, including 19 projects for Newport Beach. A Harry Lorick, past President of the Southern California Chapter of APWA, announced that Ms. Marston is the second candidate in 64 years who is from California working in the private sector and is well -deserving of the recognition. • Proclamation Recognizing National NurseNctitioner Week Mayor O'Neill read the proclamation and presented it to Carol Cunningham who was honored to accept the recognition and appreciated Council's support. PUBLIC COMMENTS ON AGEND4AND NON -AGENDA ITEMS Jim Mosher suggested that, in the interest of transparency, Closed Session Item A.1 be explained to the public and suggested that, if �Ln agreement is finalized, the item be returned and placed on the open session agenda. He also discussed a potential contradictory future agenda item related to limiting calls for service per address for police and fire services (Matter for a Future Agenda). CLOSED SESSION — Council Chambers Conference Room A. CONFERENCE WITH REAL PROPERTY NEGOTIATORS (Government Code § 54956.8): 2 matters 1. Property: A portion of the public right-of-way adjacent to 929 Zurich Circle (423-282-04) and 944 Via Lido Nord (423-281-10) (approximately 1,105 square feet). City Negotiators: Seimone Jurjis, Assistant City Manager, and Lauren Whitlinger, Real Property Administrator. Negotiating Parties: Palmer Luckey on behalf of the 929 Zurich Circle Trust and the 944 Via Lido Nord Trust. Under Negotiation: Instruction to City Negotiators regarding price and terms of payment. Volume 66 - Page 200 City of Newport Beach November 12, 2024 2. Property: 9080 Talbert Ave., Fountain Valley, California 92708 - APN: 157-132-38. City Negotiators: Seimone Jurjis, Assistant City Manager, Mark Vukojevic, Utilities Director, and Lauren Whitlinger, Real Property Administrator. Negotiating Parties: Harold Betts with RECollective on behalf of the Boer Family Trust. Under Negotiation: Instruction to City Negotiators regarding price and terms of payment. V. RECESSED — 4:16 p.m. VI. RECONVENED AT 5:10 P.M. FOR REGULAR MEETING VII. ROLL CALL 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 o City Attorney Harp announced that no reportable actions were taken. IX. INVOCATION — Dr. Steven P. Mueller, Vice President, Chief Mission Officer, Concordia University X. PLEDGE OF ALLEGIANCE — Councilmember Avery XI. NOTICE TO THE PUBLIC XII. CITY COUNCIL ANNOUNCEMENTS AND ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES 14 Councilmember Kleiman: • Congratulated the Distinguished Citizen Program (DCP) graduates and Marie Case for being named Citizen of the Year Councilmember Avery: • Attended the Beam Signin�emony for the Witte Lecture Hall Councilmember Grant: • Congratulated Citizen of the Year Marie Case and Business Persons of the Year Eagle Four Partners • Recognized the Newport Beach Film Festival • Utilized a slide to highlight the Halloween Spooktacular event and a video showcasing the mural of Balboa Island's history and culture Mayor Pro Tem Stapleton: • Announced he got married • Congratulated and recognized the 11th DCP class, Marie Case, and Eagle Four Partners • Attended the Veterans Day event on Newport Island Mayor O'Neill: • Echoed Councilmembers' announcements XIII. MATTERS WHICH COUNCILMEMBERS HAVE ASKED TO BE PLACED ON A FUTURE AGENDA (NON -DISCUSSION ITEM) Volume 66 - Page 201 City of Newport Beach November 12, 2024 • Consider adopting an ordinance to define excess calls for service to any one property in a specified time frame, and establish a process for reimbursement to the City in order to recover costs, disincentivize over utilization, and reduce overburdening, of the City's essential police, fire, and paramedic resources [Kleiman] All Councilmembers, except Mayor O'Neill and Councilmember Weigand, concurred to bring the item back at a future meeting. XIV. PUBLIC COMMENTS ON CONSENT CALENDAR Councilmember Weigand commended staff on their grant preparation for Item 14 (Acceptance of the State of California Office of Traffic Safety Selective Traffic Enforcement Program Grant). Regarding Item 9 (Resolution No. 2024-82: Approving an Amendment to the Key and Management Compensation Plan and Authorizing the City Manager to Enter into Amendment C to the Employment Agreement with the Fire Chief), City Manager Leung provided an oral report per State law that summarized the recommendations for total compensation for the Police and Fire Chiefs. Adam Leverenz supported the development of long-term housingAk in Item 5 (Ordinance No. 2024-26: Local Coastal Program Amendment Related to Changing Land Use for the Hanna Residences at 3014 Balboa Boulevard) and asked Council to consider wateAwnt uses instead of the pool project in Item 8 (Resolution No. 2024-81: Initiating General Plan and Zoning Amendments Related to the Lower Castaways Aquatics Facility). Jim Mosher stated that he believed the pool use in Item 8 is not consis ent with the current designation in the General Plan and Coastal Land Use Plan. XV. CONSENT CALENDAR ' READING OF MINUTES AND ORDINANCES 4 1. Minutes for the October 22, 2024, City Council Meeting Waive reading of subject minutes, approIs amended, and order filed. Mayor Pro Tem Stapleton abstained from Item 1 since he was not in attendance at the meeting. 2. Reading of Ordinanc Waive reading in full of a Jances under consideration and direct the City Clerk to read by title only. ORDINANCE FOR INTRODUCTION 3. Ordinance No. 2024-29 and Resolution No. 2024-80: Amendments to Ground Lease and Local Coastal Program Amendments Related to the Lido House Hotel Site (PA2020-068) (C-5567B) a) Find this action is consistent with the California Environmental Quality Act (CEQA). Pursuant to Section 15062 of the CEQA Guidelines, the changes authorized under the project are not substantial, as they do not involve new significant effects or a substantial increase in the severity of previously identified significant effects, and therefore, a subsequent Environmental Impact Report (EIR) does not need to be prepared; b) Adopt Resolution No. 2024-80, A Resolution of the City Council of the City of Newport Beach, California, Adopting a Local Coastal Program Amendment to Change the Development Limit Specified in the Coastal Land Use Plan Related to the Lido House Hotel Located at 3300 Newport Boulevard and 475 32nd Street (PA2022-068); Volume 66 - Page 202 City of Newport Beach November 12, 2024 c) Waive full reading, direct the City Clerk to read by title only, introduce Ordinance No. 2024-29, An Ordinance of the City Council of the City of Newport Beach, California, Adopting a Local Coastal Program Amendment to Change the Development Limit Specified for the Lido House Hotel Located at 3300 Newport Boulevard and 475 32nd Street (PA2020-068), and pass to second reading on December 10, 2024; d) Authorize the City Manager and City Clerk to execute the Second Amendment to Ground Lease between the City of Newport Beach and Lido House, LLC (Tenant), to update certain terms and conditions related to mortgage financing of the leased premises, in a form substantially similar to the agreement prepared by the City Attorney; and e) Authorize the City Manager and City Clerk to execute the Option Agreement to Ground Lease with Related Third Amendment to Ground Lease and Third Amendment to Ground Lease between the City of Newport Beach and Lido House, LLC (Tenant), to incorporate the property located at 475 32nd Street into the leased premises and allow the Tenant to construct five cottages and various site and public improvements, in a form substantially similar to the agreement prepared by the City Attorney. Councilmember Blom recused himself from Item 3 due to real property interest conflicts. ORDINANCES FOR ADOPTION 4. Ordinance No. 2024-25: Amending Chapte '15.02 (Administrative Code Related to Construction and Demolition Waste Permits) 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) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, 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. 2024-25, An Ordinance of the City Council of the City of Newport Beach, California, Amending Section 15.02.085 (Addition of Section 105.3.1.1) of Chapter 15.02 (Administrative Code) of the Newport Beach Municipal Code, to Update Administrative Procedures for%he Handling of Permit Deposits and Fees Associated with Waste Generated from Construction Projects Having a Valuation Over $100, 000 or that Result in the Complete Demolition of a Structure. 5. Ordinance No. 2024-26: Local Coastal Program Amendment Related to Changing Land Use for the Hanna Residences at 3014 Balboa Boulevard (PA2020-060) a) Find this amendment exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15303 under Class 3 (New Construction or Conversion of Small Structures) of the CEQA Guidelines, because it has no potential to have a significant effect on the environment and local governments are exempt from the requirements of CEQA in connection with the adoption of a Local Coastal Program, and further that the exceptions to the Class 3 exemption do not apply; and b) Conduct second reading and adopt Ordinance No. 2024-26, An Ordinance of the City Council of the City of Newport Beach, California, Amending Title 21 (Local Coastal Program Implementation Plan) of the Newport Beach Municipal Code to Change the Zoning District From Commercial Neighborhood (CN) to Two -Unit Residential (R-2) and to Amend Setback Map S-2B — Balboa Peninsula to Remove a Front Setback Designation Abutting the Side Property Line For the Property Located at 3014 Balboa Boulevard (PA2020-060). 6. Ordinance No. 2024-27: Local Coastal Program (LCP) Amendment to Increase the Development Limit Specified for Bay Island (PA2022-087) a) Find this action exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15303 under Class 3 (New Construction or Conversion of Small Structures) of the CEQA Guidelines, because this project has no potential to have a significant effect on the environment; and Volume 66 - Page 203 City of Newport Beach November 12, 2024 b) Conduct second reading and adopt Ordinance No. 2024-27, An Ordinance of the City Council of the City of Newport Beach, California, Amending Title 21 (Local Coastal Program Implementation Plan) to Change the Development Limit Specified for Bay Island from 23 Dwelling Units to a Maximum of 25 Dwelling Units (PA2022-087). 7. Ordinance No. 2024-28: Amending Title 21 (Local Coastal Program Implementation Plan) of the Newport Beach Municipal Code Relating to Accessory Dwelling Unit Regulations (PA2021-113) a) Find this project is statutorily exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15282(h) of the CEQA Guidelines, which states that the adoption of an ordinance regarding second units to implement the provisions of Sections 65852.1 and 65852.2 (now 66310 through 66342) of the Government Code are exempt from the requirements of CEQA; and b) Conduct second reading and adopt Ordinance No. 2024-28, An Ordinance of the City Council of the City of Newport Beach, California, Adopting Local Coastal Program Amendment No. LC2021-003 as Modified by the California Coastal Commission to Amend Title 21 (Local Coastal Program Implementation Plan) of the Newport Beach Municipal Code to Implement Council Policy K-4 (Reducing the Barriers to the Cnfttion of Housing) and New State Law Requirements Relating to Accessory Dwelling Units (PA2021-113). RESOLUTIONS FOR ADOPTION W 8. Resolution No. 2024-81: Initiating General Plan and Zoning Amendments Related to the Lower Castaways Aquatics Facility (PA2024-0138) Mow a) Determine the adoption of this resolution is exempt from environmental review under the California Environmental Quality Act ("CEQA") pursuant to Section 15262 of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it involves feasibility or planning studies for possible future actions which the agency, board, or commission has not approved or adopted; and b) Adopt Resolution No. 2024-81, A Resolution 04the City Council of the City of Newport Beach, California, Initiating Amendments to Table LU2 of the General Plan Land Use Element and to the Castaways Marina Planned Community (PC-37) Development Plan to Increase the Anomaly 54 Development Limit and to Allow a Community Recreational Facility at Lower Castaways Park, 100 Dover Drive (PA2024-0138). 9. Resolution No. 2024-82:� Approving an Amendment to the Key and Management Compensation Plan and Authorizing the City Manager to Enter into Amendment C to the Employment Agreement with the Fire Chief (C-8182-2) 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. 2024-82, AResolution of the City of Newport Beach, California, Approving an Amendment to the Key and Management Compensation Plan and Authorizing the City Manager to Enter into Amendment C to the Employment Agreement with the Fire Chief; and c) Authorize the City Manager to Execute Amendment C to the Fire Chief Employment Agreement. CONTRACTS AND AGREEMENTS 10. Approval of Professional Services Agreement with Stantec Consulting Services, Inc. for the Arterial Pavement Rehabilitation Project (Project Nos. 23R15, 25R11 and 25R15) (Contract No. 8895-3) 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; and Volume 66 - Page 204 City of Newport Beach November 12, 2024 b) Approve a professional services agreement with Stantec Consulting Services, Inc. for Arterial Street Rehabilitation Engineering Design Services for a total not -to -exceed amount of $369,973, and authorize the Mayor and City Clerk to execute the agreement. Mayor O'Neill and Mayor Pro Tem Stapleton recused themselves from Item 10 due to their membership in the Pacific Club. 11. Amendment No. One to a Professional Services Agreement with MetaSource, LLC for Document Archiving Services (C-7000-4) 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 the amended Amendment No. One to Professional Services Agreement with Metasource, LLC for Document Archiving Services by $50,000, for a new not -to -exceed amount of $170,000, and authorize the Mayor and City Clerk to execute the Amendment. 12. Amendment No. One to Lease with Newport Harbor Post No. 291 of the American Legion for Use of the Real Property and Tidelands Located at 215 15th Street (C-1772) a) Find this project is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301 (Existing facilities), and Section 15302 (Replacement or Reconstruction) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because this project has no potential to have a significant effect on the environment; and b) Authorize the City Manager and City Clerk to execute Amendment No. One to Lease Between the City of Newport Beach and Newport Harbor Post No. 291 of the American Legion for use of City Property, the uplands and adjacen ' ela located at 215 15th Street, in a form substantially similar to the amendment to e staff report. MISCELLANEOUS 13. Budget Amendment to Appropriate a Donati from the Dorothy Arens Ressel Trust to the Library's Fiscal Year 2024-25 Library Materials 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) Approve Budget mendment No. 25-025 to increase revenue in account number 01060005- 561005 by $15,73 06 and increase expenditures by the same amount in account number 01060005-841052. IM 14. Acceptance of the State of California Office of Traffic Safety Selective Traffic Enforcement Program Grant PT25191 (C-8201-9) 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 Council to accept a $360,000 Selective Traffic Enforcement Program award granted to the Newport Beach Police Department by the State of California, Office of Traffic Safety; and c) Approve Budget Amendment No. 25-016 increasing NBPD revenue estimates and expenditure appropriations by $360,000. Motion by Mayor Pro Tem Stapleton, seconded by Councilmember Blom, to approve the Consent Calendar; and noting the amendments to Items 1 and 11, the abstention by Mayor Pro Tem Stapleton to Item 1, the recusal by Councilmember Blom to Item 3, and the recusals by Mayor O'Neill and Mayor Pro Tem Stapleton to Item 10. The motion carried unanimously. Volume 66 - Page 205 City of Newport Beach November 12, 2024 XVI. ITEMS REMOVED FROM THE CONSENT CALENDAR — None XVII. PUBLIC COMMENTS ON NON -AGENDA ITEMS Jim Mosher noted the approach Yorba Linda took to shift community support in favor of their housing element and suggested that Council have more trust in the public and their ability to understand issues. XVIII. PUBLIC HEARING 15. Ordinance Nos. 2024-30 to 2024-32 and Resolution No. 2024-83: Adopting a Nexus Study and Fee Schedule, and Establishing a Development Impact Fee Program Mayor O'Neill opened the public hearing. Jim Mosher asked if there is a chance that proposals to the City could escape the need for a Development Agreement (DA), whether or not applicants would pay impact fees during the transition period, and if Council should assess park in -lie 1es on the new rental units. Ik Hearing no further testimony, Mayor O'Neill closed the public hearing. Mayor O'Neill appreciated staffs work and effort on the matter. 4 At the request of Councilmember Grant, Assistant City Manager Jurjis confirmed that there are applications pending that will not be subject to fees or a DA, and he is having conversations with applicants about voluntarily paying the impact fees. Additionally, park in -lieu fees will only apply to for -sale properties. 40 Motion by Mayor O'Neill, seconded by Councilmomber Blom, to a) determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2), 15060(c)(3), 15273, and 15378(b)(4) of the CEQA Guidelines, because this action will not result in a physical change to the environment, directly or indirectly; b) adopt Resolution No. 2024-83, A Resolution of the City Council of the City of Newport Beach, California, Adopting the Development Impact Fee Nexus Study for the City of Newport Beach and Establishing Development Impact Fees for Nonresidential and Residential Development (PA021-127); c) waive full reading, direct the City Clerk to read by title Lly, introduce Ordinance No. 2024-30, An Ordinance of the City Council of the City of Newport Beach, California, Repealing and Replacing Chapter 14.33 (Water and Sewer Capital Improvement Fev) to the Newport Beach Municipal Code Authorizing Collection of Development Impact Fees for Water and Sewer Service Facilities, and pass to second reading on December 10, 2024; d) waive full reading, direct the City Clerk to read by title only, introduce Ordinance No. 2024-31, An Ordinance of the City Council of the City of Newport Beach, California, Adding Chapter 15.43 (Recreation Facilities Improvement Fee) to the Newport Beach Municipal Code Authorizing Collection of Development Impact Fees for Recreation Facilities, and pass to second reading on December 10, 2024; and e) waive full reading, direct the City Clerk to read by title only, introduce Ordinance No. 2024-32, An Ordinance of the City Council of the City of Newport Beach, California, Adding Chapter 15.44 (Public Safety Development Impact Fee) to the Newport Beach Municipal Code Authorizing Collection of Development Impact Fees for Police and Fire Service Facilities, and pass to second reading on December 10, 2024. The motion carried unanimously. XIX. CURRENT BUSINESS 16. Resolution No. 2024-84: Amending City Council Policy I-10 Including Re -Titling and Cultural Arts Sculpture Exhibition Proposal Volume 66 - Page 206 City of Newport Beach November 12, 2024 Mayor O'Neill thanked the City Arts Commission and noted that the staff report was well -written. Councilmember Grant thanked staff and the City Arts Commission for making the sculpture exhibition a success, viewed the exhibition as an ongoing City franchise, supported efficient planning and use of resources, and made a recommendation to continue the $2,500 honorarium per year per artist instead of decreasing it to $2,000. She also indicated that she opposed any suggestion that excludes artists outside of Orange County from the exhibition. Councilmember Blom thanked the City Arts Commission for returning with a fiscally responsible proposal. In response to Mayor O'Neill's question, Library Services Director Hartson relayed that the reduced honorarium amount is for Council's consideration as a cost saving measure and stated that the staff recommendation is for a $2,500 artist honorarium. Motion by Councilmember Grant, seconded by Mayor Pro Tern Stapleton, to a) determine these actions are exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelincs because this action will not result in a physical change to the environment, directly or indirectly; b) adopt Resolution No. 2024-84, A Resolution of the City Council of the City of Newport Beach, California, Amending City Council Policy I-10 (Financial Support for Culture and Arts) Including Re -Titling as City Council Policy I-10 (Culture and Arts Grants); and c) approve the City Arts CommisNon's recommendation for a three- year Sculpture Exhibition in Civic Center Park and determine the artist honorarium allocation per sculpture. The motion carried unanimously. AL 17. Agreement with Visit Newport Beach Inc. for Tourism Promotion, Marketing and Branding Services (C-4961-1) ,4 Mayor O'Neill noted the work on the matter, the importance of continuing robust advertising, noted that short-term lodging funds would be focused on enforcement and public safety measures, and expressed his appreciation to the subcommittee. Kory Kramer read a statement on behalf of Debbie Snavely, Visit Newport Beach (VNB) Chairperson, which expressed her support for the proposed agreement, applauded the City Council's working group, recognized the valuable partnership with the City and expressed thanks. Jim Mosher suggested that the revised agreement include a requirement that VNB board meetings be made open to the public. He further suggested appointing a City Council representative on the board and questioned how the proposed revisions are in response to the public's request for defraying costs associated with Short -Term Lodging (STL). Adam Leverenz read agenda materials and suggested remaining within the 18% Transit Occupancy Tax (TOT) budget. Councilmember Avery noted having productive conversations during subcommittee meetings focused on striking a balance regarding tourism, recognized the heavy investments in adjacent hotels and surrounding properties, commented on vacation rentals and the impacts of an overconcentration of STL units resulting in mismanaged properties, thought VNB is an excellent organization and voiced his approval of the outcome, and expressed excitement for the future of tourism in the City. Councilmember Weigand thanked Councilmember Avery, Mayor O'Neill, and subcommittee and partners who worked together on the matter. He thought efforts made to finalize the VNB agreement will be positive for the City. Volume 66 - Page 207 City of Newport Beach November 12, 2024 Q Councilmember Grant thanked the subcommittee, commended VNB leadership, and recognized positive collaboration between City staff and outside consultants which will result in improved services and accommodations. Motion by Mayor 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; and b) approve a five-year agreement with Visit Newport Beach Inc. for tourism promotion, branding and marketing services, and authorize the Mayor and City Clerk to execute the agreement. The motion carried unanimously. MOTION FOR RECONSIDERATION - None ADJOURNMENT - Adjourned at 6:02 p.m. in memory of Roger Carlson and Timothy Tamura The agenda and amended agenda were posted on the Eity'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 6, 2024, at 4:00 p.m., axld November 8, 2024, at 2:30 p.m. I Leilani I. Brown -A City Clerk i4 Volume 66 - Page 208 December 10, 2024 CITY OF NEWPORT BEACH Agenda Item No. 1 City Council Meeting Minutes Regular Meeting November 19, 2024 I. ROLL CALL — 4:01 p.m. 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 II. PRESENTATION • Proclamation Recognizing Pastor Greg Laurie Mayor O'Neill read the proclamation and presented it to Pastor Greg Laurie who expressed gratitude for the recognition, highlighted his faith journe d love of Newport Beach, and thanked Council. III. PUBLIC COMMENTS ON AGENDA AND NON -AGENDA ITEMS Miles Patricola asked Council to extend his congratulations to his opponent, Sara Weber. He noted his campaign was focused on e-bike safety, asked Council to elaborate on the matter, and offered a geofencing solution. Additionally, he suggested a long-term solution to rising sea levels, commented on a bipartisan solution to address the regional homeless issue, and suggested adding staff to focus on the matter. 40 Lee Pearl thanked Mayor O'Neill and Councilmembel Avery for their service and support. He also thanked staff for their work Balboa Island underground project, noting the project is ahead of schedule and under budget. IV. CLOSED SESSION -ACouncil Chambers Conference Room A. CONFERENCE WITH REAL PI PERTY NEGOTIATORS (Government Code § 54956.8): matters 1. Property: 301 E. Balboa Blvd., Newport Beach, CA 92660 - APN: 048-082-01. City Negotiators: Seimone Jurjis, Assistant City Manager, and Lauren Whitlinger, Real Property Administrator. Negotiating Parties: Joseph Berkson, Marcus & Millichap, on behalf of Bobby Hanada and Linda Hanada. Under Negotiation: Instruction to City Negotiators regarding price and terms of payment. 2. Property: A portion of the public right-of-way adjacent to 929 Zurich Circle (423-282-04) and 944 Via Lido Nord (423-281-10) (approximately 1,105 square feet). City Negotiators: Seimone Jurjis, Assistant City Manager, and Lauren Whitlinger, Real Property Administrator. Negotiating Parties: Palmer Luckey on behalf of the 929 Zurich Circle Trust and the 944 Via Lido Nord Trust. Volume 66 - Page 209 City of Newport Beach November 19, 2024 Under Negotiation: Instruction to City Negotiators regarding price and terms of payment. V. RECESSED - 4:16 p.m. VI. RECONVENED AT 4:58 P.M. FOR REGULAR MEETING VII. ROLL CALL 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 - Mayor O'Neill X. PLEDGE OF ALLEGIANCE - Boy Scout Troop 695 XI. NOTICE TO THE PUBLIC XII. CITY COUNCIL ANNOUNCEMENTS AND ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES Councilmember Grant: • Attended the 52nd Citizens Police Academy graduation and a California Sober Living and Recovery Task Force meeting so Mayor Pro Tem Stapleton: • Attended the 52nd Citizens Police Academy graduation Mayor O'Neill: • Attended his last Finance Committee meeting • Announced that the Lido House Hotel received the first ever Ocean Friendly Hotel Award from the Surfrider Foundation XIII. MATTERS WHICH COUNCILMEMBERS HAVE ASKED TO BE PLACED ON A FUTURE AGENDA (NON -DISCUSSION ITEM) • Consider adopting a resolution that provides that any seat on the Finance Committee held by a Councilmember or Councilmember's appointee is automatically vacated once the Councilmember is no longer a member of the City Council [O'Neill] Council unanimously concurred to bring the item back at a future meeting. • Consider adoption of a resolution amending the resolutions creating the General Plan Advisory Committee (GPAC) and General Plan Update Steering Committee (GPUSC) to provide for the annual appointment of members at the first meeting in February of each year. Existing member terms shall expire each February unless the member is reappointed to the GPAC or GPUSC [O'Neill] Mayor Pro Tem Stapleton asked for the item to return in January 2025 and Mayor O'Neill agreed. Council unanimously concurred to bring the item back at a future meeting. XIV. PUBLIC COMMENTS ON CONSENT CALENDAR Volume 66 - Page 210 City of Newport Beach November 19, 2024 Regarding Item 17 (Memorandum of Understanding and Loan Agreement with Nancy Lynn Gardner for the Sculpture A Novel Idea), Mayor O'Neill stated that the sculpture is one of his favorite art pieces, thought it appropriate to be preserved and placed at the Balboa Branch library, and thanked Nancy Gardner. XV. CONSENT CALENDAR RESOLUTIONS FOR ADOPTION 1. Resolution No. 2024-85: Initiating an Amendment to Titles 20 and 21 of the Newport Beach Municipal Code Regarding the Housing Opportunity (HO) Overlay Zoning Districts (PA2024-0205) a) Determine this action exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15262 (Feasibility and Planning Studies) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3; and b) Adopt Resolution No. 2024-85, A Resolution of the City Council of the City of Newport Beach, California, Initiating an Amendment to the Housing Opportunity (HO) Overlay Zoning Districts in Title 20 (Planning and Zoning) and the Pending Htn Opportunity (HO) Overlay Coastal Zoning Districts in Title 21 (Local Coastal Program ntation Plan) of the Newport Beach Municipal Code (PA2024-0205). 2. Resolution No. 2024-86: Approving Submittal of Gr F ding Application Under Orange County Transportation Authority (OCTA) C ehensive Transportation Funding Program (CTFP) a) Find this amendment exempt from the California Environmental Quality Act (CEQA) pursuant 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. 2024-86, A Resolution of the City Council of the City of Newport Beach, California, Approving the Submittal of a Funding Application for an Arterial Capacity Enhancement Project to the Orange County Transportation Authority for Funding Under the Comprehensive Transportation Funding Program, for the West Coast Highway Widening at Old Newport Boulevard project. ff 3. Resolution No. 2024-87: Supporting an Application by the City of Santa Ana to the Orange County Transportation Authority for Funding Under Measure M2 Regional Traffic Signal Synchronization Program for the Bristol Street Project from SR-22 to Jamboree Road 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. 2024-87, A Resolution of the City Council of the City of Newport Beach, California, Supporting an Application by the City of Santa Ana to the Orange County Transportation Authority for Funding Under Measure M2 Regional Traffic Signal Synchronization Program, for the Bristol Street Project from SR-22 to Jamboree Road. 4. Resolution No. 2024-88: 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. 2024-88, A Resolution of the City Council of the City of Newport Beach, California, Concerning the Measure M2 Expenditure Report for the City of Newport Beach for the Fiscal Year Ending June 30, 2024. 5. Resolution No. 2024-89: Total Compensation Philosophy Volume 66 - Page 211 City of Newport Beach November 19, 2024 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. 2024-89, A Resolution of the City Council of the City of Newport Beach, California, Adopting an Updated Total Compensation Philosophy; and c) Approve Comparator Agencies for the purpose of conducting pay and benefit surveys. 6. Resolution No. 2024-90: Acceptance of Wildfire Prevention Grant from State of California Department of Forestry and Fire Protection (C-9495-2) 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. 2024-90, A Resolution of the City Council of the City of Newport Beach, California, Authorizing Acceptance of California Climate Investments Wildfire Prevention Grants Program Funding Administered by CAL FIRE for the Buck Gully Reserve Hazardous Fuel Thinning and Reduction Project; c) Approve State of California Grant Agreement 5GG23212 for the Buck Gully Reserve Hazardous Fuel Thinning and Reduction Project and authorize tWity Manager and City Clerk to execute the agreement and any subsequent related documents a,-kWy be related to the reimbursement of the cost of the Project; and d) Approve Budget Amendment No. 25-041 appropriating $449,763.69 in increased revenue from the State of California Department of Forestry and Fire Protect' n to Fire Prevention Account 01040402-431454-G2540 (State Grants) and appropriatino $449,763.69 in increased expenditures to Fire Prevention Account 01040402-821004-G2540 (Grant Expenses). Councilmember Grant recused herself from Item 6 due to a potential financial impact conflict due to her business partner living near Buck Gully. CONTRACTS AND AGREEMENTS 7. Irrigation Controllergdftacements - Notice of Completion for Contract No. 9527-1 (24P02) 1k a) Accept the completed work and authorize the City Clerk to file a Notice of Completion for the project. It 8. Tamura Deep Water Well Rehabilitation (Project No. 24W15) - Notice of Completion for Contract No. 9328-1 a) Accept the completed work and authorize the City Clerk to file a Notice of Completion for the project. 9. Underground Utility Assessment District No. 113 - Notice of Completion for Contract No. 7979-1 a) Accept the completed work and authorize the City Clerk to file a Notice of Completion for the project; and b) Approve Budget Amendment No. 25-040 appropriating $150,000 in increased expenditures in Account No. 66302-941003 from the Assessment District 113 unappropriated fund balance. 10. Tamura Shallow, Dolphin Shallow and Dolphin Deep Water Well Rehabilitation - Award of Contract No. 9598-2 (25W07) and Approval of Amendment No. One to Professional Services Agreement with Richard C. Slade and Associates for Water Well Rehabilitation, Contract No. 9598-1 (25W07) a) Find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15302(c), Class 2 (reconstruction of existing facility involving negligible or no expansion of capacity)] 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; Volume 66 - Page 212 City of Newport Beach November 19, 2024 c) Approve Budget Amendment No. 25-039 appropriating $1,339,096 in increased expenditures in Account No. 70201931-980000-25W07 and transferring funds from the Water Enterprise Fund unappropriated fund balance to the Water Capital Fund; d) Award Contract No. 9598-2 to General Pump Company for the total bid price of $2,317,060, and authorize the Mayor and City Clerk to execute the contract; e) Establish a contingency of $232,000 (approximately 10% of total bid) to cover the cost of unforeseen work not included in the original contract; and f) Approve Amendment No. One to the Professional Services Agreement Contract No. 9598-1 with Richard C. Slade and Associates, Inc. for an additional $245,510 for a total not -to -exceed amount of $287,606 and authorize the Mayor and City Clerk to execute the amendment. 11. Fiscal Year 2024-25 Restroom Rehabilitation Phase 2 — Award of Contract No. 8905-3 (24F02) 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. 8905-3 to Empire Design & Build LLCkr the total bid price of $920,000 for the FY 2024-25 Restroom Rehabilitation Phase 2, and aut orize the Mayor and City Clerk to execute the contract; and d) Establish a contingency of $92,000.00 (approximately 10%+of tal bid) to cover the cost of unforeseen work not included in the original contract. J 12. Underground Utility Assessment District No. 124 (Central Balboa Island — Phase 2) — Award of Contract No. 9451-2 a) Acknowledge this project is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15302(d), Class 2 (conversion of overhead electrical utility distribution lines where the surface is restored to the condition existing prior to the undergrounding) 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. 9451-2 to Asplundh Construction, LLC for the total bid price of $5,687,675 for the Underground Utility Assessment District No. 124 (Central Balboa Island — Phase 2) project, and authorize the Mayor and City Clerk to execute the contract; d) Establish a contingency of $570,000 (approximately 10% of total bid) to cover the cost of unforeseen work At included in the original contract; and e) Approve Amendment No. Five to the Professional Services Agreement for Assessment District Engineering Services for Underground Utility Assessment District No. 124 with NV5, Inc. (C-8627-2) to increase the fee amount by $256,969 for a total not -to -exceed contract amount of $824,816, extend the contract expiration date to June 30, 2026, and authorize the Mayor and City Clerk to execute the agreement. Councilmember Blom recused himself from Item 12 due to real property interest conflicts. 13. Approval of Professional Services Agreement with LAZ Parking California, LLC for Balboa Peninsula Trolley Transit Operations and Vehicle Procurement Services (C-8306- 2B) 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) Approve Budget Amendment No. 25-035 appropriating $3,274,720 in new revenue and expenditures from OCTA to Account Nos. 1230053-431150-25T13 and 1230053-980000-25T13, respectively, and appropriating $641,027 in increased expenditures in Account No. 01201938-980000-25T13 from the General Fund Capital Improvement Program unappropriated fund balance; and Volume 66 - Page 213 City of Newport Beach November 19, 2024 c) Approve a Professional Services Agreement with LAZ Parking California, LLC for Balboa Peninsula Trolley Transit Operations and Vehicle Procurement Services of five new trolley vehicles for a total not -to -exceed amount of $3,897,746.55 and authorize the Mayor and City Clerk to execute the agreement. 14. Concrete Replacement Program FY 2024-25 — Award of Contract No. 9715-1 (25R06) a) Find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301(c), Class 1 (maintenance of existing public facilities involving negligible or 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) Award Contract No. 9715-1 to Towo Enterprise, Inc. for the total bid price of $1,586,380, and authorize the Mayor and City Clerk to execute the contract; and d) Establish a contingency of $159,000 (approximately 10% of total bid) to cover the cost of unforeseen work not included in the original contract. 15. Cooperative Agreements with One Ford Road Community Association (C-9793-1) and Belcourt Hill Homeowners Association (C-9794-1) for Maintenance of Median Improvements 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 CEVA Guidelines because this action will not result in a physical change to the environment, dire y or indirectly; b) Approve the Cooperative Agreement between the City of Newport Beach and One Ford Road Community Association for maintenance of median improvements on Ford Road; c) Approve the Cooperative Agreement between the City of Newport Beach and Belcourt Hill Homeowners Association for maintenance of median improvements on Ford Road; and d) Authorize the Mayor and City Clerk to execute the agreements. 16. Approval of On -Call Professional Services Agreements with Norm Nedell (C-9795-1) and Jodi Mannino (C-9796-1) for Emergency Medical Services Nurse Educator/Continuous Quality Improvement Services a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) an060(c)(3) of the CEQA Guidelines because this action will not result in a physical change tWole environment, directly or indirectly; b) Approve On -Call Professional Services Agreement with Norm Nedell for a three-year term and a total amount not -to -exceed $60,000 to provide Continuous Quality Improvement (CQI) services, and authorize the Mayor and City Clerk to execute the agreement; and c) Approve On -Call Professional Services Agreement with Jodi Mannino for a three-year term and a total amount not -to -exceed $145,000 to provide Continuous Quality Improvement (CQI) services and authorize the Mayor and City Clerk to execute the agreement. 17. Memorandum of Understanding and Loan Agreement with Nancy Lynn Gardner for the Sculpture A Novel Idea (C-9797-1) 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; b) Approve a Memorandum of Understanding and Loan Agreement between the City of Newport Beach and Nancy Lynn Gardner for the exhibition of the sculpture, A Novel Idea; and c) Approve the placement of A Novel Idea in the Library Entry Plaza of the new Balboa Branch Library. 18. Revocable License Agreement with Newport Beach Chamber of Commerce for Use of Promotional and Branding Materials (C-9798-1) 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 Volume 66 - Page 214 City of Newport Beach November 19, 2024 b) Approve a Revocable License Agreement with the Newport Beach Chamber of Commerce for the use of promotional and branding materials. MISCELLANEOUS 19. Budget Amendment to Accept a Check from the California Library Literacy Services and Appropriate Funds to the Library's Fiscal Year 2024-25 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 $41,935 from California Library Literacy Services and approve Budget Amendment No. 25-031 to increase expenditures by the same amount in the Literacy accounts. 20. 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 the CEQA Guidelines because this action will not result in a physical change to the environmelairectly or indirectly; and b) Receive, review and file the annual reports on de ent impact fees and development agreements. Motion by Mayor Pro Tem Stapleton, seconded bACdMucilmember Avery, to approve the Consent Calendar; and noting the recusals by Councilmember nt to Item 6 and Councilmember Blom to Item 12. The motion carried unanimously. XVI. ITEMS REMOVED FROM THE CONSENT CALENDARk XVII. PUBLIC COMMENTS ON NON -AGENDA ITEM Al Bruder advocated for the selection of Deputy Police Chief Dave Miner as the next Police Chief. Jim Mosher announced that a General Plan date workshop will take place on November 20, 2024, at 6:00 p.m. in the Civic Center Community Room to discuss the City's plan for coastal resilience and safety, and encouraged the community to attend. XVIII. CURRENT BUSINESS _ 21. Placement of Original Wooden City Seal from the Former City Council Chambers Don Webb utilized a presentation to review the origin of the City's seal and its extensive history. He detailed the placement of the 8-foot City seal on various buildings and highlighted the support from seven past City mayors to install the official seal on the wall adjacent to the Civic Center entry. Councilmember Grant thanked Mr. Webb for his continued service to the City. Councilmember Avery noted the continued involvement of past mayors and commended their ongoing work in Newport Beach. Jim Mosher supported restoring the City seal to a prominent location and suggested placing it on the wall next to the Community Room facing the parking lot or opposite of that location so it would be in the breezeway. He also recommended exploring alternative locations. Adam Leverenz suggested using an eve to protect the City seal from weathering and to reduce maintenance. Volume 66 - Page 215 City of Newport Beach November 19, 2024 Mayor Pro Tem Stapleton suggested placing the City seal at the parking structure entrance but would support it being installed on the side of the Council Chambers. Councilmember Weigand supported the City seal placement as proposed by Mr. Webb, encouraged staff to remove any blemishes resulting from the removal of the current seal, and thought it looked best on the right-hand side of the lettering. Motion by Councilmember Weigand, seconded by Mayor O'Neill, 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) direct staff to remove the existing metal seal on the north exterior wall of the Council Chambers adjacent to the Civic Center entrance, and install the 8-foot wooden City seal on the north wall to the upper right on the facility name lettering, unless the removal of the metal seal leaves a noticeable scar/blemish that cannot be acceptably repaired. In that case, install the 8-foot wooden City seal over the scarred/blemished area under the facility lettering. With Councilmember Kleiman voting "no," the mot ried 6-1. 22. Appointment of a Civil Service Board Memberto o Fil nscheduled Vacancy In response to Jim Mosher's concern about Council only considering two applicants rather than three as prescribed within the City Charter, City Attorney Harp thought Council can move forward with two applicants since the Civil Service BoaI&Qnly recommended two nominees. City Clerk Brown read the ballots as follow Michael Denner — Avery, Blom, Grant, Kleiman ei , Stapleton, and Weigand City Clerk Brown announced that Michael DAFlier was appointed for a term that expires on June 30, 2027. �& XIX. MOTION FOR RECONSIDERATION — Ae XX. ADJOURNMENT — 5:31 p.m. The agenda and amended agenda were 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 14, 2024, at 4:00 p.m., and November 15, 2024, at 10:00 a.m. Leilani I. Brown City Clerk Will O'Neill Mayor Volume 66 - Page 216