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HomeMy WebLinkAbout01 - MinutesFebruary 25, 2025 CITY OF NEWPORT BEACH Agenda Item No. 1 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 Pro' 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 revlie 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. It Mayor Stapleton noted the Ci ng cal responsibility and emphasized that the City has a balanced budget with a surplus. Finance Director Al Imam contin 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 proMputor position besides hiring a full-time position, but deferred to the City Attorney. City Attorney Harp stated at staff will review options and return to the City Council. In response to Mayor Pro Tem Kleiman'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. A' 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. 40 Assistant City Manager Jurjis utilized a pr entation to highlight changes to the Code Enforcement program and beach vendor enforcement. 4 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 adoptiAT an ordinance to protect recycling fees. Mayor Stapleton assured Ms. Rawson that every item she noted is ahigh priority nd is being dealt with. Dennis Bress expressed support for the Flock program and forl``having tion 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 drpne 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. a John Clement, STL appell tlupported establishing a modification to STL permit enforcement that allows for some latitude during unforeseen situations. Nancy Scarborough suggested a 'Now 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 waitlist 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 Stokes 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 (Councilme OL lom 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, bsibly with the Balboa Yacht Basin Dredging. Public Works Director Webb continued the present ion 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 rggulations. In response to Councilmember Grant's qug,stion, 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. A 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 Levernz 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 Cousin ' embers expressed support for the project. Mayor Stapleton thought that the possible housing develotent in t kleball 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 Newport Center area, discuss the housing numbers, what to look forward to in 2025, and Finance Director Al -Imam revieWd 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 tworyear 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 Council's 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 housing opportunity, 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 sp^. City Manager Leung stated that the CEQA contract will come before Council in March and the bulk of tl&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 ah 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 (JW 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. 'AdEnhh, Nancy Scarborough suggested forming a perman t safety committee. Jack Callahan agreed that EQAC should return, requested information about the bank issue surrounding the Balboa Island parade, an�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. Leilani I. Brown City Clerk Joe Stapleton Mayor Volume 66 - Page 262 February 25, 2025 CITY OF NEWPORT BEACH Agenda Item No. 1 City Council Meeting Minutes Regular Meeting February 11, 2025 I. ROLL CALL — 4:00 p.m. 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 II. INVOCATION — Michael Mooslin, First Church of Christ, Scientist, Newport Beach III. PLEDGE OF ALLEGIANCE — Councilmember Weber IV. PRESENTATION Ak • History of the Red Car Trolley by Bill Lobdell Bill Lobdell utilized a presentation to discuss the Pacific Electric red car trolley and its impact on Newport Beach's development, how the trolley, introduced in 1902, shaped the City by bringing tourists and facilitating land development, explained the partnership between W.S. Collins and Henry Huntington that led to the trolley's establishment, and how it connected Newport Beach to the rest of Southern California. He also mentioned the construction of the Balboa Pavilion in 1906 as a key attraction linked to the trolley line. The presentation concluded with information about the trolley's operation until 1953 and its lasting influence on the City's layout. Mayor Stapleton then provided an update on the city's plans to introduce new trolleys in the summer of 2026, with the goal of connecting different parts cif the city and reducing car usage V. PUBLIC COMMENTS ON AGENDA AND NON -AGENDA ITEMS Jim Mosher commented on the deviation from the normal protocol of placing public comments on non -agenda items later Ni the agenda. He congratulated Mayor Pro Tem Klein on her remote participation in a recent California Coastal Commission meeting and questioned why Newport Beach does not offer remote participation for Council meetings. He also suggested that Councilmembers clarify when they are speaking as individuals rather than on behalf of the entire Council. Adam Leverenz commended City Manager Leung on selecting David Miner as the new Police Chief, expressed approval of hiring from within the department and praised the new Chief's qualities. VI. CITY COUNCIL ANNOUNCEMENTS AND ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES Councilmember Barto: • Attended and discussed last week's Water Quality/Tidelands Committee meeting Councilmember Grant: • Congratulated the new Police Chief • Reported on a meeting and tour with Supervisor Katrina Foley at the MemorialCare Women's Health Pavilion - Saddleback Medical Center and discussed a county proposal for a model ordinance addressing sober living facilities • Thanked staff for holding the annual Planning Session • Congratulated Mayor Stapleton for the 43rd Annual Mayor's Dinner and thanked Speak Up Newport Volume 66 - Page 263 City of Newport Beach February 11, 2025 • Attended the Chamber of Commerce's Wake Up Newport event where Fire Chief Boyles, Battalion Chief Novak, and Fire Marshal Gillespie reported on fire preparedness Mayor Pro Tem Kleiman: • Hosted a legislative ad hoc committee for the California Sober Living Task Force • Spoke with homeowner associations about fire mitigation and public safety • Attended the So Cal Advanced Air Mobility working group meeting • Announced that the next Aviation Committee Meeting will be held on February 24, 2025 at the OASIS Senior Center Mayor Stapleton: • Attended the annual Planning Session, the Police Department Mobile Caf6 event, and the Mayor's Dinner • Provided updates on the trash interceptor project and announced the ribbon cutting will be held on March 7, 2025 • Discussed his upcoming self -funded trip to London with Visit Newport Beach for tourism promotion VII. MATTERS WHICH COUNCILMEMBERS HAVE ASKE& TO BE PLACED ON A FUTURE AGENDA (NON -DISCUSSION ITEM) M — • Consider creating an ad hoc committee to review the structure, membership, roles and responsibilities of the Aviation Committee [Blom] The City Council unanimously concurred to bring the item back at a future meeting. VIII. PUBLIC COMMENTS ON CONSENT CALENCAR i Regarding Item 5 (Slurry Seal Program), Jim Mosher noted that cracks in his street and in the Dover Shores area have reappeared less than a year after the sealing work was completed and stated that the contractor might need to do fol -up work. IX. CONSENT CALEND READING OF MINUTES AND ORDINAIVES 1. Minutes for the January 28, 2025, City Council Meeting Waive reading of subject minutes, approve as written, and order filed. 2. Reading of Ordinances Waive reading in full of all ordinances under consideration and direct the City Clerk to read by title only. RESOLUTION FOR ADOPTION 3. Resolution No. 2025-7: Creating the Community Development Block Grant Ad Hoc Advisory Committee 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. 2025-7, A Resolution of the City Council of the City of Newport Beach, California, Creating the Community Development Block Grant Ad Hoc Advisory Committee; and c) Confirm the appointments of Mayor Pro Tem Lauren Kleiman and Councilmember Sara J. Weber to serve on the Community Development Block Grant Ad Hoc Advisory Committee. Volume 66 - Page 264 City of Newport Beach February 11, 2025 CONTRACTS AND AGREEMENTS 4. East Coast Highway and San Miguel Drive Pavement Rehabilitation and Evening Canyon Road Drainage Improvements — Notice of Completion for Contract No. 8925-2 (23R11) a) Accept the completed work and authorize the City Clerk to file a Notice of Completion for the project. 5. Slurry Seal Program (Fiscal Year 2022-23 and Fiscal Year 2023-24) —Notice of Completion for Contract No. 9380-1 (24R04) a) Accept the completed work and authorize the City Clerk to file a Notice of Completion for the project. 6. Approval of On -Call Maintenance and Repair Services Agreement for Portable Toilet Services with United Site Services of California, Inc. (C-8445-3) a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; b) Approve a Maintenance and Repair Services Agreeme with United Site Services of California, Inc. for on -call portable toilet services for a five -yea and total not -to -exceed amount of $200,000; and c) Authorize the Mayor and City Clerk to execute a t. 7. Amendment to Professional Services Agreeme ith A is Orange County for Sculpture Exhibition Project Management Extension a) Determine this action is exempt from the California nvironmental 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 Amendment No. Two to the Professional Services Agreement with Arts Orange County for Sculpture Exhibition — Phase VIII (C-8463-6), which extends the term of the agreement to September 1, 2026, and increases the contract amount by $7,500, and authorize the Mayor and City Clerk to execute the agreement; and c) Approve Amendment No. One to the Professional Services Agreement with Arts Orange County for Sculpture Exhibition — Phase IX (C-8463-7), which extends the term of the agreement to October 1, 2027, and increases the contract amount by $7,500, and authorize the Mayor and City Clerk to execute the agreement. 8. Proposal to Reduce Flashy Fuels and Restore Habitat in Buck Gully Reserve (C-9825-1) a) Find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15304 (Class 4 - Minor Alterations to Land) and 15308 (Class 8 - Actions Taken by Regulatory Agencies for Protection of the Environment) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it has no potential to have a significant effect on the environment; b) Approve Budget Amendment No. 25-053 transferring $425,055 from the unappropriated General Fund balance to the General Fund CIP and appropriating it into Account No. 01201928-911047-BGFRR; and c) Authorize the City Manager to execute a contract that is acceptable to the City Attorney with Irvine Ranch Conservancy in the amount of $425,055 to reduce flashy fuels and restore habitat in Buck Gully. MISCELLANEOUS 9. Confirmation of Nominations to Fill the Vacancy on the Planning Commission a) Determine that the 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 it will not result in a physical change to the environment, directly or indirectly; and Volume 66 - Page 265 City of Newport Beach February 11, 2025 b) Confirm the nominations of Greg Reed, Loren Smith, and Drew Teicheira to fill the vacancy on the Planning Commission. 10. Confirmation of Councilmember Michelle Barto's and Councilmember Noah Blom's Citizen Appointments to the Finance Committee a) Determine that the 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) Confirm Councilmember Michelle Barto's appointment of William Kenney, Jr. and Councilmember Noah Blom's appointment of Kory Kramer to serve on the Finance Committee until June 30, 2025. 11. Financial Statement Audit Results and Related Communication for the Fiscal Year Ended June 30, 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; and b) Receive and file. Ak 12. Acceptance of the National Highway Traffic Safety Administration (NHTSA) Illegal Passing of Stopped School Buses -High Visibility Enforcement Pilot Project 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) Accept a $57,800 NHTSA Illegal Passing of School Buses -High Visibility Enforcement Pilot Project award granted to the Newport Beach Police Department by Toxcell LLC; and c) Approve Budget Amendment No. 25-052 increasing NBPD revenue estimates and expenditure appropriations by $57,800. io Motion by Mayor Pro Tem Kleiman, seconded by louncilmember Barto, to approve the Consent Calendar. The motion carried unanimously. X. ITEMS REMOVED FROM THE CONSENT CALENDAR - None XI. PUBLIC HEARINGS in 13.Ordinance No. 2025-1: Granting Non -Exclusive Commercial Solid Waste Franchise Agreements Mayor Stapleton opened the public hearing. Hearing no testimony, he closed the public hearing. Motion by Councilmember Weigand, seconded by Councilmember Blom, 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) waive full reading, direct the City Clerk to read by title only, and introduce Ordinance No. 2025-1, An Ordinance of the City Council of the City of Newport Beach, California, Granting Non -Exclusive Franchise Agreements for Commercial Solid Waste and Divertible Materials Handling Services Within the City of Newport Beach, and pass to second reading on February 25, 2025. The motion carried unanimously. Volume 66 - Page 266 City of Newport Beach February 11, 2025 14. Resolution No. 2025-8: Amending the Schedule of Rents, Fines and Fees to Provide a Pass - Through of Credit Card Transaction Fee Charged by Third Parties Directly to the Consumer Mayor Stapleton opened the public hearing. Jim Mosher expressed concern for the public's understanding of the new fee structure. City Manager Leung explained that credit card fees charged to the City from the merchant payment processor will be passed along to the public. Hearing no further testimony, Mayor Stapleton closed the public hearing. Motion by Mayor Stapleton, seconded by Councilmember Grant, to b) 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. 2025-8, A Resolution of the City Council of the City of Newport Beach, California, AmendyNx the Schedule of Rents, Fines and Fees to Provide a Pass -Through of Credit Card Transaction Fee Charged by Third Parties Directly to the Consumer. The motion carried unanimously. 1k i 15. Resolution No. 2025-9: Approving a Request to Waive City Council Policy L-2, Driveway Approaches, and a Coastal Development Permit for a Duplex at 3601 Lake Avenue Assistant Planner Arregui utilized a presentation to explain the reasons for the waiver request and the project's compliance with coastal development permit requirements. He also noted proposed amendments to the resolution. _&� Mayor Stapleton opened the public hearing. Hearing no testimony, he closed the public hearing. Motion by Councilmember Weigan7seconded by Councilmember Weber, to a) find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15303 of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, under Class 3 (New Construction or Conversion of Small Structures), because it has no potential to have a significant effect on the environment; and b) adopt amended Resolution No. 2025-9, A Resolution of the City Council of the City of Newport Beach, California, Waiving City Council Policy L-2 (Driveway Approaches) and Approving a Coastal Development Permit to Demolish an Existing Single -Unit Dwelling and Construct a New Duplex Located at 3601 Lake Avenue (PA2024-0105). The motion carried unanimously. XII. CURRENT BUSINESS 16. Employment Agreement for City of Newport Beach Police Chief (C-9826-1) City Manager Leung outlined the key components of the employment agreement, including the annual base salary, cost of living increases, termination clause, and contract term. In response to Councilmember Blom's questions, City Manager Leung stated that the salary range has been in effect since the last salary survey, the salary is in line with the former Police Chiefs salary, Cost of Living Adjustments (COLA) are associated with the Police Management Association's (PMA) and are not reflected in the base pay, and the range reflects only the base salary. Volume 66 - Page 267 City of Newport Beach February 11, 2025 Mayor Pro Tem Kleiman supported Police Chief Miner's appointment; however, suggested clarifying that the base pay is subject to the salary range of the Police Chiefs position exempting scholastic and other pay, and any conflicts between the Key and Management Plan and PMA for COLA versus other benefits. She thought that Section 4E was arbitrary and inconsistent with the Fire Chief's agreement and suggested amending the contract to have more concrete bonus pays that are not discretionary. City Manager Leung noted that there are no set adjustments on the merit bonuses for executive management. Mayor Pro Tem Kleiman proposed leaving that in and adding a provision with a set increase. City Attorney Harp discussed "locked in" salary increases in the Fire Chiefs employment contract and proposed annual locked in increases for the Police Chief up to the range of the salary schedule or a bonus that is not tied to performance that does not impact the base pay or salary schedule. In response to Councilmember Blom's question, City Manager Leung confirmed that the whole salary range coincides with the COLA increase that is tied to PMA and is separate from a merit increase. Councilmember Blom suggested a 3% merit bonus increase yearly. Motion by Councilmember Blom, seconded by Mayor Pro Tem Kleiman, to a) determine that the 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 it will not result in a physical change to the environment, directly or indirectly; and b) authoriN the City Manager to Execute an amended Employment Agreement Between the City of Newport Beach and David Miner for Police Chief Services, including the amendments suggested by Mayor Pro Tem Kleiman and adding the 3% annual merit bonus. 10 At Councilmember Grant's request, City Attorney Harp reviewed the two options for how to handle the bonus: 1) for a base pay annual increase of 3% up to the maximum of the salary schedule which is PERS-able; or 2) a 3% bonus `� he base salary that is paid independent of a performance evaluation and is not PERS-�ble. Councilmember Blom indicated that his i&ent is to ensure there is a merit bonus piece in the Police Chiefs agreement that is attributed to his performance and expressed concern regarding the current salary range which is derived from an outdated compensation survey. In response to Councilmember Barto's question, City Manager Leung stated that the 3% increase will be outside of the salary range. In response to City Manager Leung's question, Councilmember Blom indicated that he envisions that the bonus would be a one-time lump payment at the end of the year once the contract is fulfilled. Councilmember Weigand asked what the disqualifier would be. Councilmember Blom stated that right now there is no bonus locked in and this amendment will be adding a floor to the bonus. Councilmember Barto suggested that the draft language be brought back at the February 25, 2025 City Council meeting. City Attorney Harp stated that Council can approve the item and then bring back an amendment to the contract. Councilmember Weigand asked about retroactive pay to the contract. City Attorney Harp indicated that there is time for the bonus discussion to return to Council since it would not be paid until a year from now. City Manager Leung thought it was best to approve the bulk of the agreement now, so it is in place for the next pay period. Volume 66 - Page 268 City of Newport Beach February 11, 2025 Substitute motion by Councilmember Grant, seconded by Councilmember Barto, tc bring back language regarding the bonus structure at the February 25, 2025 City Council meeting. With Mayor Pro Tem Kleiman, Councilmember Blom, and Councilmember Weber voting "no," the motion carried 4-3. Motion by Mayor Pro Tem Kleiman, seconded by Councilmember Blom, to a) determine that the 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 it will not result in a physical change to the environment, directly or indirectly; and b) authorize the City Manager to Execute an Employment Agreement Between the City of Newport Beach and David Miner for Police Chief Services, including the amendments suggested by Mayor Pro Tem Kleiman. The motion carried unanimously. XIII. MOTION FOR RECONSIDERATION - None XIX. ADJOURNMENT - 4:54 p.m. The agenda was posted on the City's website and n th Hall electronic bulletin board located in the entrance of the City Council Chafers Civ0ic Center Drive, Newport Beach, on February 6, 2025, at 4:00 p.m. Leilani I. Brown City Clerk 1�j VI'W w oe Stapleton ayor Volume 66 - Page 269