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HomeMy WebLinkAbout02/01/2025 - Special MeetingCITY OF NE PORT REACH City Council Meeting Minutes Special Meeting - Planning Session February 1, 2025 I. CALL THE MEETING TO ORDER - 9:00 a.m. Roll Call Present: Mayor Joe Stapleton, Mayor Pro Tem Lauren Kleiman, Councilmember Michelle Barto, Councilmember Noah Blom, Councilmember Robyn Grant, Councilmember Sara J. Weber, Councilmember Erik Weigand Mayor Stapleton led the Invocation and Pledge of Allegiance. At Mayor Stapleton's request, Acting Police Chief Miner shared information about the incident that took place on the Newport Pier in the early morning. Mayor Stapleton announced that he would be recusing himself during discussions regarding the MacArthur Boulevard Street Revitalization (Campus Drive to Jamboree Road) Project due to conflicts of interest due to the project's proximity to the Pacific Club. Councilmember Blom announced that he would be recusing himself during discussions regarding the Balboa Island Utility Undergrounding Project and Balboa Island Drainage Master Plan Project due to real property interest conflicts. II. UPDATE ON FINANCIAL STATUS AND BUDGET DEVELOPMENT Finance Director Al -Imam utilized a presentation to review the long-range financial forecast that is in line with what he presented to the Finance Committee last week. He provided an overview of the General Fund revenues, including property tax revenues, residential sales trends, sales tax revenues and major industry groups, Transient Occupancy Tax (TOT), and comparisons between commercial TOT versus residential TOT. Mayor Stapleton noted the City's strong fiscal responsibility and emphasized that the City has a balanced budget with a surplus. Finance Director Al -Imam continued with the presentation to highlight the General Fund expenditures, expenditures by department, the FY 2025-26 preliminary General Fund expenditure outlook and preliminary capital funding outlook, and paydown strategy to eliminate the pension liability by 2033. Dennis Bress thanked the City for paying down the pension by 2033 and noted there will be about $45 million in discretionary money as a result. Lee Pearl recommended using the interest earned from the pension paydown strategy for programming or investments. Virginia Anders-Ellmore wondered if "other revenue" funds come from the Federal government and are subject to cuts. Finance Director Al -Imam stated that $750,000 is at risk, but City Manager Leung noted that there is Federal funding that has been guaranteed to the City. III. MAJOR INITIATIVES - SERVICES Acting Police Chief Miner utilized a presentation to discuss the Crime Information Center (CIC) which will be co -located with dispatch and the Flock License Plate Reader (LPR) Program. Mayor Stapleton noted the Flock cameras are currently the best technology in the field. Volume 66 - Page 256 City of Newport Beach Planning Session February 1, 2025 Acting Police Chief Miner continued the presentation by noting that three additional officers have been assigned as Homeless Liaison Officers to the Quality of Life Team and reviewed the Point -in -Time Count and PATH Census results. Mayor Stapleton applauded Mayor Pro Tem Kleiman, Councilmember Grant, and staff for their hard work on the homelessness matter, and Councilmember Grant reviewed the remarkable results. Acting Police Chief Miner noted there will be a budget request to add a new City prosecutor position to provide additional support to address recidivism. City Attorney Harp shared that there has been an uptick in cases referred to his office since the municipal code change and City Manager Leung noted a forthcoming budget amendment for the recruitment. Mayor Pro Tem Kleiman suggested expanding the mounted horse unit in the Police Department. City Manager Leung stated that her suggestion can come back during budget discussions if interest exists among the City Council. The straw vote result was 7-0. Mayor Pro Tem Kleiman inquired- about other options for the prosecutor position besides hiring a full-time position, but deferred to the City Attorney. City Attorney Harp stated that staff will review options and return to the City Council. In response to Mayor Pro s Tem Klei_man's question, Acting Police Chief Miner confirmed that a Peninsula Enforcement Team existed years ago. Acting Police Chief Miner continued with the presentation to discuss the proposed drone program. In response to Council questions, Finance Director Al -Imam noted that there is currently no funding for a drone program in the current year's budget. Assistant City Manager Jurjis utilized a presentation to highlight changes to the Code Enforcement program and beach vendor enforcement. In response to Council questions, Assistant City Manager Jurjis stated that items resulting from beach vendor enforcement are disposed: -He and Finance Director Al -Imam reviewed the reactive program for code enforcement and Acting Police 'Chief Miner relayed the dedicated parking control program. Mayor Pro Tem. Kleiman emphasized the need to be proactive, particularly during the summer months and weekends. Assistant City Manager Jurjis continued with the presentation to outline the Short Term Lodging (STL) inspection program. In response to Councilmember Weigand's question, Assistant City Manager Jurjis discussed the proactive enforcement approach and reactive enforcement. Finance Director Al -Imam continued the presentation to discuss STL permits. Councilmember Grant thought that further discussion on this matter would be valuable. Assistant City Manager Jurjis reviewed the timeline and Councilmember Grant proposed postponing issuing more STL permits before a decision is made by the California Coastal Commission (CCC) possibly in July and reviewed the approach. Mayor Stapleton outlined the STL count and Assistant City Manager Jurjis explained that attrition will bring the STL count to 1,475. Councilmember Barto supported Councilmember Grant's suggestion to postpone issuing STLs, but City Manager Leung noted the time it takes to issue a permit and that the City needs to follow the current rules. City Attorney Harp concurred and discussed potential options. In response to Council questions, Assistant City Manager Jurjis clarified that 75 STL permits have not been approved yet, Finance Director Al -Imam stated that 1,550 STL permits will not be reached by May, and City Attorney Harp noted that only ,one permit is processed at a time. Councilmember Grant thought the City should stay with the current STL permit count'until further discussion is conducted by Council and deferred the matter to City Attorney Harp who would look into the matter. Councilmember Weigand suggested the total allowable STL permit count be evaluated later. Mayor Stapleton thought the matter needed to be monitored and noted further discussion would occur in May. Volume 66 - Page 257 City of Newport Beach Planning Session February 1, 2025 Finance Director Al -Imam relayed that the mailing discrepancies for STL noticing have been resolved, but a representative for an unresolved hardship appeal is present to address Council. City Attorney Harp stated that the representative can speak during public comments. Assistant City Manager Jurjis continued with the presentation to review refuse enforcement, SB 1383 (State mandated 3-cart waste system), and code enforcement staffing. In response to Councilmember Grant's questions, Code Enforcement Supervisor Murray stated that the City conducts lid flips for commercial addresses to check that materials are in the correct bins, residential inspection is starting with the STLs, and agreed to provide public education on the matter. City Manager Leung utilized the presentation to review the program enhancement proposals for the FY 2025- 26 budget and asked for feedback relative to the STL hardship appeal. Carmen Rawson questioned the number of police officers assigned to homelessness, requested beach patrol to monitor e-bike activity and a dashboard to list vendor licensing and permits, noted camping/encampment activity on Balboa Island with no nighttime enforcement, relayed that the 20% CCC restriction on STL permits for multi -units is not implemented and suggested attaching the requirement to the property's title so, upon the sale of the property the restriction is implemented, noted that a property has been under construction for six years that has two STL permits, and suggested adopting an ordinance to protect recycling fees. Mayor Stapleton assured Ms. Rawson that every item she noted is a high priority and is being dealt with. Dennis Bress expressed support for the Flock program and for having fire detection drones. Adam Leverenz expressed concern that reduced homeless numbers for the City have compounded the risks in Costa Mesa, suggested the confiscated beach vendor items be donated instead of disposed, proposed a percentage of STL permits be owner -occupied units, and inquired about drone use. Councilmember Grant relayed the resources and accommodations the City offers for properly housing homeless individuals instead of moving people from one city to the next. Jim Mosher asked for a breakdown of the types of prosecutions that are occurring, noted that SB 1383 has an enforcement component that requires inspections, and thought straw polls should occur after public comments. John Clement, STL appellant, supported establishing a modification to STL permit enforcement that allows for some latitude during unforeseen situations. Nancy Scarborough suggested a "slow walk' of the current STL permits and having Park Rangers conduct enforcement after hours on the beaches. Susan De Santis thanked the City and fire department for protecting the community, noted town hall meetings to talk about fire protection in Newport Coast, and expressed concern for the City's efforts with brush maintenance. Lee Pearl thought that Council's approach to STL permits is going in the right direction, stated he is not a proponent of STLs on Balboa Island, and shared that he is on the STL permit waithst to see how long it will take to get to the top of the list. Virginia Anders-Ellmore suggested reactivating the Environmental Quality Affairs Committee (EQAC) to address potential fire risks and insurance issues, and noted the good work of the Water Quality/Coastal Tidelands Committee. Barbara Abbott thought that Balboa Island is saturated with STLs, discussed the impact of STLs on neighbors, and asked if saturation levels are considered when permits are granted. Tim Stoaks inquired about the percentage of rubbish removal by the Costa Mesa Sanitation District, supported an increased use of equestrians by the Police Department, and expressed concern for the use of drones in the same area as an airport. Volume 66 - Page 258 City of Newport Beach Planning Session February 1, 2025 Beverly Jones noted that the retaining wall from Morning Canyon Road to Seaward Road needs repair and asked for it to be added to the budget. Referencing the STL appeal, City Manager Leung asked if Council would like to consider adding a process to the STL enforcement that considers hardship cases. Mayor Stapleton and Councilmember Blom suggested authorizing the Finance Director to handle hardship STL cases. Councilmember Weigand suggested there be further discussion if instances increase. City Manager Leung confirmed that authority can be retroactive. The straw vote result was 7-0. Since City Attorney Harp noted that hardship would need to be defined in the municipal code, City Manager Leung indicated that the matter would need to return to Council for approval. IV. FY 2025-26 CAPITAL IMPROVEMENT PROGRAM Public Works Director Webb indicated that the City has a residential refuse contract with CR&R that includes enforcement. He utilized a presentation to provide an overview of projects, including the Witte Lecture Hall, Balboa Island Utility Undergrounding (Councilmember Blom left the room), and the Lower Harbor Navigation Channel Dredging. In response to Councilmember Grant's question, Public Works Director Webb indicated that there would be no cost savings for the Lower Harbor Navigation Channel Dredging, but possibly with the Balboa Yacht Basin Dredging. Public Works Director Webb continued the presentation to review the Balboa Branch Library and Fire Station Replacement, City Yard Fleet Fueling System with a Compressed Natural Gas (CNG) filling station that creates circulation and security issues, and future electric vehicle regulations. In response to Councilmember Grant's question, Public Works Director Webb indicated that the Balboa Ferry may be exempted from needing to become electric since it is privately owned, but that would still need to be looked into further. Public Works Director Webb continued the presentation to outline the Balboa Island Drainage Master Plan — Pipes and Pump Stations (Councilmember Blom left the room), MacArthur Street Revitalization — Campus Drive to Jamboree Road (Mayor Stapleton left the room), and replacement of the 15th Street Beach Restroom and Beach Trail Split from 14th Street to Newport Pier Project. In response to Councilmember Weigand's question, Public Works Director Webb stated that this is the first phase of the trail split. The presentation continued with the West Coast Highway Pedestrian and Bicycle Bridge at Superior Project, noted that there is a large Orange County Transportation Authority (OCTA) component to the project, and negotiations will take place once a logical property is determined to land the bridge. Public Works Director Webb presented the development of the FY 2025-26 Capital Improvements Project (CIP) budget, draft CIP budget process, major infrastructure funding sources, and Facilities Financing Plan (FFP). Finance Director Al -Imam reviewed the FFP, including project and funding challenges. Public Works Director Webb continued with the presentation to highlight community/Council requested projects, such as the retaining wall in Corona del Mar, lights for the Newport Coast Community Center (NCCC) pickleball courts, and additional pickleball courts at the Bonita Canyon Sports Park. In response to Councilmember Weigand's question, Public Works Director Webb thought parking could be accommodated at the park, but expressed concern for Mayor Stapleton's idea of putting new pickleball courts next to the existing pickleball courts. Dennis Bress commended the Public Works Department and its asphalt selection. Adam Leverenz suggested including refuse educational information with the trash bills. He asked the City to review the cost associated with building an aquatic center at Lower Castaways and noted the site is considered as recreational and commercial by the General Plan with a maximum building size of 2,000 square feet, but the proposed plan exceeds this by four times. Volume 66 - Page 259 City of Newport Beach Planning Session February 1, 2025 Susan De Santis thanked staff and Council for preparing the CIP and thought that MacArthur Boulevard (Mayor Stapleton left the room) needs to be looked at with a broader vision when residential development is added to the airport area to incorporate the arterials leading into the area and how to support, a thriving mixed use community, including improvements in the City of Irvine within the IBC. Lee Pearl commended the Balboa Island undergrounding project (Councilmember Blom left the room) and highlighted projects needed on Balboa Island, such as an automated flood control system, an updated playground, public restroom access, a Citywide trolley, and offsite parking. Ken Rawson reviewed the beach trail split project and asked why the City is doing a partial project without studying a complete boardwalk separation from 36th Street to E Street (City Clerk Brown recused herself due to real property interest conflicts and left the room). Carmen Rawson expressed concern for pedestrians on the boardwalk (City Clerk Brown left the room). Mayor Pro Tem Kleiman emphasized that the Corona del Mar retaining walls are City -owned. No further discussion was requested and all Councilmembers expressed support for the project. Regarding adding lights to the NCCC pickleball courts, all Councilmembers expressed support for the project. Mayor Stapleton thought that the possible housing development in the pickleball court area is a topic that needed further discussion. Councilmember Weigand expressed the public's concern about circulation, parking, and noise issues around Bonita Canyon Sports Park. City Manager Leung concurred that this issue should be discussed during a study session. V. UPDATE ON PROJECTS UNDER NEW HOUSING AND LAND USE ELEMENTS Assistant City Manager Jurjis utilized a presentation to provide an update on major housing projects in the airport area and Nebvport Center area, discuss the housing numbers, what to look forward to in 2025, and Finance Director Al -Imam reviewed development -related fees. In response to Council questions, Assistant City Manager Jurjis stated that the City needs to amend the General Plan to transfer Regional Housing Needs Assessment (RHNA) units between planning areas. He confirmed that the City would prepare a Request for Proposal (RFP) for the development of an airport area master plan, it would be a two year project, and the RFP would go to Council in July or August. Dennis Bress commended staff and suggested using the words "workforce housing." Nancy Scarborough supported developing an inclusionary ordinance and a specific plan for the airport area and the Newport Center area. Jim Mosher noted Councils approval of housing units without a Greenlight vote, including new housing in Newport Center and much of the airport area that are not required by the State, and noted the plans do not include 40% affordable housing units at each site. He expressed concern for the risk of decertification of the City's Housing Element and the loss of local control. Lee Pearl suggested including public art as part of the community's development. In response to Councilmember Barto's question, Assistant City Manager Jurjis stated that the Newport - Mesa Unified School District's property has been identified as a housing opportunity site, the City will receive credit for it and has jurisdiction for its planning, conversations with the school district have occurred, and the City will work with the school district for project entitlements. VI. MAJOR INITIATIVES — PROJECTS Public Works Director Webb utilized the presentation to outline the following proposed projects: the Aquatic Complex at Lower Castaways, MacFadden Plaza and Newport Pier Rehabilitation, new Police Department Building, concrete pavement needs, City Trolley Program, and the potential trolley expansion route. Volume 66 - Page 260 City of Newport Beach Planning Session February 1, 2025 Mayor Stapleton started a conversation about the concrete pavement needs (Councilmember Blom left the room due to real property interest conflicts associated with the Balboa Island Concrete Street Replacement Project) and Public Works Director Webb utilized the presentation to review the project. He responded to Mayor Pro Tem Kleiman's questions by stating that the concrete on Ocean Boulevard is old and cracked, but can last another 10 years, his department has received a lot of complaints about it, and is included in the project list because there is work that will be occurring in the area. Furthermore, he responded to Councilmember Weigand's concern for safety by stating that there are no unsafe portions of roadway, and Council can anticipate this type of work by adding it to the plans and suggested a progressive approach. In response to Mayor Stapleton' s concern for involving the Finance Committee or a subcommittee in the funding discussion, Public Works Director Webb noted that the seawall is in the master plan and the Finance Committee is setting aside money, but these projects are outside of the FFP, and City Manager Leung relayed that the FFP is reviewed yearly with the Finance Committee. Mayor Stapleton noted funding sources for specific projects and discussed the steps for the Aquatic Complex with City Manager Leung. Public Works Director Webb asked if Council had any additional concerns before the City spends funds. In response to Councilmember Blom's question, Public Works Director Webb stated that Council approved $500,000 and not much of it has been spent. City Manager Leung stated that the CEQA contract will come before Council in March and the bulk of the funds were allocated to CEQA. In response to Councilmember Barto's question, Public Works Director Webb indicated that additional funding can be added when Council is presented with a contract in March for environmental and design consultants. In response to Councilmember Grant's question, Assistant City Manager Jurjis stated that the CCC is supportive of the project and identified areas needing attention in the design process. Councilmember Blom thought that CEQA approval and community outreach would come before bringing the final design to Council. Public Works Director Webb relayed that CEQA needs aspects of the project defined and a 30% design proposal is satisfactory. Councilmember Weigand indicated he could support minimal spending so Council can continue to study it, but thought there might be a better site for a community pool. City Manager Leung pointed out that CEQA must be specific. Mayor Stapleton noted that the City will conduct a traffic study and outreach. City Manager Leung, Public Works Director Webb, and Deputy Public Works Director Houlihan reviewed the funding for the MacFadden Plaza and Newport Pier Rehabilitation Project. Public Works Director Webb noted that the consultant will be having a discussion with Council and the community to refine the plan that will lead to concept development and a design contract. Councilmember Blom referred to this area as an iconic piece of Newport Beach and the most difficult section to improve. Public Works Director Webb stated that Council can form an oversight group for this project since there will be many decisions to make. Mayor Stapleton supported the idea of establishing an oversight group and he, Mayor Pro Tem Kleiman, and Councilmember Blom offered to serve on it. City Attorney Harp stated the matter should come back to Council for adoption, but Councilmember Weigand suggested conducting a study session before creating an ad hoc committee. Public Works Director Webb clarified that community outreach will begin in the next couple of months regarding the project and then the project will come back to Council during a study session for discussion. Mayor Stapleton asked to be involved with the community outreach. Regarding the Police Department headquarters, Public Works Director Webb confirmed that the project is included in the FFP. Mayor Stapleton recapped the timeline and funding for the trolley project. Public Works Director Webb utilized the presentation to review the City trolley plans, the partnership with OCTA, and the opportunity to reinvent transportation in the City. Mayor Pro Tem Kleiman, Councilmember Blom, and Councilmember Grant supported starting a Citywide trolley system. Councilmember Grant suggested moving forward more quickly with linking the Back Bay and walking trails. Mayor Stapleton concurred and there was a consensus (7-0) for creating a Citywide trolley system. City Manager Leung indicated that a study session will occur to determine if the trolley will be seasonal or year-round. Public Works Director Webb noted that a study with OCTA will also come back to Council before the summer that will show potential routes and options. Mayor Pro Tem Kleiman added that staff is working on a real-time parking assessment that is linked to the City's app to avoid gridlock scenarios. Assistant City Manager Jurjis clarified that the app concept will come back to Council before being implemented and Public Works Director Webb indicated that staff could prepare a chart of options and related costs. Volume 66 - Page 261 City of Newport Beach Planning Session February 1, 2025 Dennis Bress supported conducting a traffic study for the Aquatic Complex and expressed support for the trolley system. Virginia Anders-Ellmore suggested establishing a communication system for connecting homeowner associations, encouraged undergrounding utilities throughout the City, and asked that the trolleys be electric powered. Adam Leverenz suggested that Council conduct community outreach for the Aquatic Complex and asked Council to consider an alternative location if the matter appears to be divisive and expensive. Dennis Baker suggested that the City gain a good understanding of what projects and funding sources may be in jeopardy due to the freezing of some Federal grants. Jim Mosher stated that the agenda did not include concrete pavement needs (Councilmember Blom left the room), Council's direction should come after public comments, and the Police Department headquarters project needs more transparency. Carmen Rawson suggested that the trolley system serve the OASIS Senior Center to support the elderly, thought public art should be included on 15th Street, and noted concrete cracks and holes on the boardwalk (City Clerk Brown left the room). VII. PUBLIC COMMENTS ON NON AGENDA ITEMS Dennis Bress reported on noise reductions from John Wayne Airport (JWA). However, he expressed concern about inaccurate Title 21 reporting to the State from JWA's Access and Noise Office and emphasized a need for the City to support a movement for the County to audit the Access and Noise Office. Jim Mosher noted that heavier planes use JWA and thought an average departure today is noisier than 25 years ago. He suggested that the Environment Quality Affairs Committee (EQAC) and Aviation Committee be reactivated. Nancy Scarborough suggested forming a permanent safety committee. Jack Callahan agreed that EQAC should return, requested information about the bank issue surrounding the Balboa Island parade, and thanked staff for their support and time. Mayor Stapleton thanked everyone in attendance. VI. ADJOURNMENT —12:26 p.m. The special meeting 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 January 29, 2025, at 12:30 p.m. Volume 66 - Page 262