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HomeMy WebLinkAbout11/12/2024 - Regular MeetingCITY OF NEWPORT BEACH City Council Meeting Minutes Regular Meeting November 12, 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, Councilmember Erik Weigand II. PRESENTATIONS • Proclamation Recognizing Marie Marston Mayor O'Neill read the proclamation and congratulated Ms. Marston for receiving the 2024 Top 10 Public Works Leaders Award from the American Public Works Association. Councilmember Grant noted her long-standing relationship with Ms. Marston and referred to her as the heartbeat of Newport Beach. Marie Marston thanked Council for the recognition and noted her involvement in over 400 projects for over 60 public agencies, including 19 projects for Newport Beach. 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 Nurse Practitioner 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. Ill. PUBLIC COMMENTS ON AGENDA AND 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 an 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). IV. 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. o ume_ _ _- Page-2_ _ 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 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 COUNCI.L ANNOUNCEMENTS AND ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES Councilmember Kleiman: • Congratulated the Distinguished -Citizen Program (DCP) graduates and Marie Case for being named Citizen of the Year Councilmember Avery: • Attended the Beam Signing Ceremony 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 llth 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 _Page-20-1 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 housing 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 waterfront 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 consistent with the current designation in the General Plan and Coastal Land Use Plan. XV. CONSENT CALENDAR READING OF MINUTES AND ORDINANCES 1. Minutes for the October 22, 2024, City Council Meeting Waive reading of subject minutes, approve as amended, and order filed. Mayor Pro Tem Stapleton abstained from Item 1 since he was not in attendance at the meeting. 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 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 321Ld Street (PA2022-068); Volume-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 Chapter 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 the 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. 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 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 Creation of Housing) and New State Law Requirements Relating to Accessory Dwelling Units (PA2021-113). RESOLUTIONS FOR ADOPTION 8. Resolution No. 2024-81: Initiating General Plan and Zoning Amendments Related to the Lower Castaways Aquatics Facility (PA2024-0138) 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 of the 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. 231115, 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 _o ume_ - age_ 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 adjacent tidelands located at 215 151h Street, in a form substantially similar to the amendment attached to the staff report. MISCELLANEOUS 13. Budget Amendment to Appropriate a Donation 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 Amendment No. 25-025 to increase revenue in account number 01060005- 561005 by $15,737.06 and increase expenditures by the same amount in account number 01060005-841052. 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. 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 -lieu fees on the new rental units. Hearing no further testimony, Mayor O'Neill closed the public hearing. Mayor O'Neill appreciated staffs work and effort on the matter. 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. Motion by Mayor O'Neill seconded by Councilmember 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 only, 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 Fee) 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. M. CURRENT BUSINESS 16. Resolution No. 2024-84: Amending City Council Policy I-10 Including Re -Titling and Cultural Arts Sculpture Exhibition Proposal Mayor O'Neill thanked the City Arts Commission and noted that the staff report was well -written. - -e ume- - Page - City of Newport Beach November 12, 2024 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 Councils 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 Guidelines 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 Commission's recommendation for a three-year Sculpture Exhibition in Civic Center Park and determine the artist honorarium allocation per sculpture. The motion carried unanimously. 17. Agreement with Visit Newport Beach Inc. for Tourism Promotion, Marketing and Branding Services (C-4961-1) 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) by using the tax collected from them. 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. o ume — age City of Newport Beach November 12, 2024 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. XX. MOTION FOR RECONSIDERATION - None XXI. ADJOURNMENT - Adjourned at 6:02 p.m. in memory of Roger Carlson and Timothy Tamura 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 6, 2024, at 4:00 p.m , and November 8, 2024, at 2:30 p.m. E Leilani I. Brown City Clerk Will O'Neill Mayor