HomeMy WebLinkAbout01 - MinutesApril 28, 2020
CITY OF NEWPORT BEACH Agenda Item No. 1
City Council Minutes
Special Meeting
April 3, 2020
I. CALL THE MEETING TO ORDER
II. ROLL CALL - 4:00 p.m.
Present: Mayor Will O'Neill, Mayor Pro Tem Brad Avery, Council Member Joy Brenner, Council Member
Diane Dixon, Council Member Duffy Duffield (telephonically), Council Member Jeff Herdman
(telephonically)
Absent: Council Member Kevin Muldoon (excused)
Invocation - Council Member Brenner
Pledge of Allegiance - Mayor O'Neill
Mayor O'Neill explained the process for the meeting pursuant to the public health orders and announced
that public comments will be heard at the end of meeting.
III. PUBLIC COMMENTS - moved to the end of the meeting
IV.
Jim Mosher commended Council for allowing public comments live and in real time, and for not hiding
behind closed doors, noting that neighboring cities have banned public attendance and participation at
meetings. He stated that a contentious issue is scheduled for the next Council meeting and believed Council
should allow the public to practice social distancing in the Council Chambers rather than the Community
Room.
Carmen Rawson asked that Council consider closing public restrooms and beaches since people are
supposed to walk near their homes.
1. Emergency Ordinance No. 2020-001: Prohibiting the Issuance of Any New Short -Term
Lodging Permit and/or the Rental of a Lodging Unit for a Short -Term, to Any Person, Except
a Medical Professional or Emergency Responder [100-2020]
Mayor O'Neill indicated there will be no staff presentation and noted that Council received extensive
communications about the subject. He thanked everyone for their input, reported that emails relative
to this issue were almost 50-50 in support and opposition, and displayed a printout of the emails
received.
In response to Mayor O'Neill's questions, City Attorney Harp advised that the proposed ordinance
prohibits the issuance of new permits for short-term lodging for the duration of the emergency and
makes it unlawful to rent, advertise, or enter into an agreement for any lodging unit for less than
30 days. He reported that the only exceptions would be rentals to a medical professional or an
emergency responder, and anyone currently occupying a short-term lodging unit would have until
April 10, 2020 to end their tenancy. He noted that the proposed ordinance would be effective
immediately and remain in effect until 1) the state of emergency is terminated by a proclamation of the
Governor, 2) the local emergency is terminated by Council, or 3) the emergency ordinance is repealed
in whole or in part by Council.
Council Member Brenner expressed concern about new people coming into the community for
occupancy and questioned whether people should be forced to leave on April 9.
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April 3, 2020
Barry Saywitz understood the desire for the ordinance, cautioned Council regarding the financial
impacts on the community, indicated operators are already operating at 5% occupancy from what they
were previously, noted the only people renting from the operators are from Southern California, not
people from other countries or states, discussed the financial impacts on mom-and-pop and short-term
operators, noted their attempts to get to the summer months to make money, expressed concern relative
to future bookings if the ordinance did not have a deadline, and proposed limiting the number of people
per unit to six or less or the term to 15 days.
Heidi Nielson indicated her business, Doyle's Beach and Boardwalk, is zoned for RMF, has no single-
family homes around it, and is located in a commercial district. She stated she wanted to partner with
the City, noted she pays bed taxes and property taxes, discussed her policies during the current
situation, expressed concern about how the ordinance would affect her business, and questioned the
upside for herself to pay taxes and whether the Lido House Hotel will be closed.
Connie Adnoff believed trying to provide housing for first responders and medical staff is noble but
expressed concern that their homes will then have the virus, stated she did not see first responders and
medical staff as the short-term rental demographic, inquired about enforcement for those doing one-
night rentals and for not following the emergency ordinance, believed renters are coming to Newport
Beach to quarantine, and questioned the difference between short and long-term rentals.
Colleen Howes expressed disappointment that Council is not trying to work with them and would
rather ban short-term rentals, explained the need for short-term rentals, did not believe anyone is going
to rent for 30 days, indicated the demographics of short-term rentals have changed since the pandemic,
stated Council should not decide who she can rent to, believed the City is addressing the pandemic
responsibly, but implementing the ordinance is not going to affect the spread of the virus, and asked if
violators would be arrested.
Zill Amshamluka discussed her current renters and the condition of her homes, and requested the City
work with them to not put a huge burden on landlords during these difficult times.
Shannon Horan, Abrams Coastal Property, believed this meeting was called to appease some
constituents, the City is in an economic recession, and the decision to ban short-term rentals will have
a further impact on the economy; indicated spring reservations have been canceled and summer
reservations are being canceled; believed there would be irreversible damage to businesses and
homeowners that expect the income; and stated renters are expected to follow the COVID-19 guidelines.
Craig Batley indicated Burr White Realty has canceled 70 reservations so far, questioned why hotels
are allowed to have guests, took issue with singling out short-term lodgings at this time, expressed
concern that the ordinance has no end date, asked whether he can book reservations for the rest of the
year, suggested that Council only ban one, two or three -night stays, believed the impact of the few
people coming into the City for short-term lodging is minimal, expressed the opinion that the ordinance
is unfair and rushed, and believed the City should rethink the ordinance and require all incoming
guests to receive the State's guidelines relative to safety.
Jeff Bosson, Sea Breeze Vacation Rentals and California Vacation Rental Association, agreed with
Mr. Batley's comments, expressed concern about the different treatment between vacation rentals and
hotels, noted public access to Newport Beach or hotels are not closed, suggested vacation rental
operators be given the option to self -regulate or block out rentals for the first two weeks of April,
believed the ordinance would result in lawsuits, and stated once Newport Beach announces vacation
rentals have been banned, summer renters will start canceling.
Russell Adnoff, Beach View Realty, expressed opposition to switching short-term lodging permits to
31 or more nights because it is not an ideal demographic, stated people looking for furnished rentals
typically do not have their feet on the ground and are not welcome in the community, but operators will
not have a choice but to rent to them, believed the City should welcome guests even during bad times,
and took issue with hotels not being considered the same as vacation rentals.
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Kevin Drucell advised that he was on pace to pay the City $5,000 in Transient Occupancy Tax this
year, but the ordinance would be a blow to short-term rentals and the restaurant industry, discussed
the value of the rental industry, believed the ordinance would impact people who live paycheck -to -
paycheck, stated renters feel his cottage is safer than a hotel and provides a change of scenery, noted
social distancing is possible in a short-term rental, but not in a hotel, stated there is no scientific proof
that staying in short-term lodging has enabled the spread of the virus, and believed the City could
eliminate one or two -night rentals and develop an industry task force to come up with solutions and
ideas other than a ban.
Carmen Rawson expressed support for prohibiting new permits, but not prohibiting short-term lodging
activities for those that already have a permit since owners and businesses are already in economic
trouble, suggested the City work with operators so that the few short-term guests can help the economy,
stated that residents, not short-term lodgers, are overcrowding the streets, believed some visitors are
afraid to visit Newport Beach because it is a hotspot for COVID-19, suggested the Council not hinder
the few opportunities for people to come to Newport Beach, indicated the City is not stopping people
from coming to Newport Beach from other places, and took issue that they cannot advertise units for
the fall and next year.
Jim Mosher expressed concern regarding Sections 2 and 3 of the ordinance because they do not appear
to be necessary emergency measures, believed owners/operators have raised valid points about short-
term lodgings serving a valid function for people needing to shelter or be isolated, and expressed the
opinion that the exception for medical personnel and first responders is too narrow.
Ken Rawson indicated there are a number of reasons why Newport Beach has such a high number of
COVID-19 cases, thanked Council for closing the boardwalk, but took issue that the City is not limiting
the number of people who come to the Peninsula, believed residents on the Peninsula want stronger
actions, reported that he only rents to families, asked Council to accelerate and formalize the short-
term lodging rules and to establish a three to four -night minimum, and stated the short-term lodging
industry needs the City to provide and enforce a fixed end date and a maximum occupancy.
In response to Mayor O'Neill's questions, City Attorney Harp explained that the ordinance does not
have a specific deadline because the date the Governor will lift the state of emergency is unknown,
Council may schedule a review of the ordinance at its May 12 City Council meeting, the emergency
ordinance can be effective through May 20, the intent of the ordinance is to ban the occupancy of short-
term lodging while the ordinance is in effect, operators are allowed to advertise lodgings for some date
in the future but if that future date conflicts with the emergency ordinance, the operator will be in
violation of the ordinance, language can be added to the ordinance to clarify that operators can
advertise or enter into agreements to book lodgings outside the emergency, violation of the ordinance
would be a misdemeanor or an administrative fine, Council may impose a four -night minimum stay,
and the State and the Alcohol Beverage Control (ABC) Board allowed the sale of alcohol for off-site
consumption.
Council Member Dixon discussed the regular ordinance process, the health and financial crisis in the
country, Federal and State orders to stay at home, the average and current beach attendance, natural
market forces that have diminished business by 90-95%, and the need to continue to discourage visitors
and to protect businesses and the health and safety of residents. She suggested Council establish
limitations on short-term lodging, particularly one, two and three -night rentals, and on the number of
occupants, conduct enforcement but not arrests, and encourage rental companies to operate in a safe
and helpful manner. She proposed limiting short-term rentals during the defined period of the
Governor's Order to help the City stay safe while supporting residents and neighbors.
Mayor O'Neill noted the need to follow guidelines and orders from public health agencies and its
experts, State and County orders and guidelines, changes in the City in response to orders and
guidelines, the closure of City facilities and amenities, the monitoring of the community for social
distancing to decrease the spread of the virus, and the need to amplify the message that it is safer to
stay at home. He discussed current guidelines, City efforts to keep people safe and follow expert advice,
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concerns from residents about short-term lodging, the need for Council to talk about something that is
not covered by the State or County, methods to keep people safe and to stop the spread of the virus,
and the effects of doing this. He believed the City should not allow one and two -night stays and
enforcement could include fines and the revocation of permits.
Mayor Pro Tem Avery indicated Council Members are concerned about doing the right thing for
residents and businesses and are conscious of not wanting to overstep. He emphasized that the
Council's and the City's first responsibility is to the safety of all the residents, noted this is the most
significant health emergency in 100 years, and the peak will not occur until possibly mid-May. He
stated Council wants to do what it can to send the message to please stay home and to give it another
month, believed that vacation rentals are for a different time, and this is not that time. He indicated
that, by limiting rentals, Council is sending a message that it cannot be business as usual. He noted
that there is no one that has not been hurt by the emergency, he wanted everyone to work together as
Council works toward a solution that is, on its face, less onerous and takes in the suggestions of the
speakers. He emphasized that the message is to stay in your homes and recreate near your homes, and
not to encourage people to travel to Newport Beach; and the need to provide some relief for businesses,
if possible. He pointed out that Council is not banning short-term rentals for the long term because it
does not know when the emergency will end. He concurred with setting an end date so people can plan
activities for when the emergency is lifted.
Council Member Brenner agreed with everyone's comments and advised that these are short-term
measures, expressed concern that if the City allows more visitors to come to Newport Beach, we are
penalizing other businesses and the whole community, stated that people all over the community are
concerned about losing lives, loved ones, and freedoms, noted that a study indicated that the ocean
breeze can carry particulates further than 6 feet, assured everyone that Council is not trying to penalize
anybody, but is trying to protect everyone, and suggested an end date be established, but for right now,
Council needs to take drastic measures to ensure people feel safe.
Council Member Herdman noted there were a million cases of Coronavirus globally, people are
encouraged to wear masks, a national stay at home order may be issued, California is two weeks away
from seeing the same number of cases as New York City, and Council needs to close everything that
creates social interaction in the City and to limit the spread of the virus.
Council Member Duffield supported a minimum four -night stay and an end date, and encouraged
businesses to seek relief offered by the Federal government.
Mayor O'Neill advised that he has reached out to the City's State Senator and County Supervisor and
asked them to follow up with health agencies to find out if there is anything else Newport Beach should
be doing differently.
Council Member Dixon implored property management companies not to market a four -night minimum
stay if Council revised the proposed ordinance, and discouraged operators from taking a four -night
minimum as a possible incentive to open rentals.
Mayor O'Neill reiterated suggested revisions to the ordinance to establish a four -night minimum,
visitors in place now can remain, allow the exemption for healthcare and first responders, and set an
end date of May 20 with a review during the May 12 City Council meeting. City Attorney Harp
preferred to leave the ordinance in effect for the duration of the emergency and to add language for
rentals and acceptance of bookings that do not occur while the emergency is in effect. He expressed
concern that, if the ordinance contains an end date, it would not be effective until after that date. He
suggested that, if the emergency is still ongoing on May 12, Council can readopt the ordinance with a
future end date. Mayor O'Neill suggested enforcement of a $1,000 fine for a first violation, a one-year
suspension of the permit for a second violation, and the revocation of the permit for a third violation
because this is an emergency ordinance.
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April 3, 2020
Mayor Pro Tem Avery believed short-term operators need to do the right thing since City personnel are
stretched too thin to strictly enforce the emergency ordinance.
Council Member Brenner indicated the issue is people coming and going during the emergency period
when the President and the Governor have said to stay home.
Council Member Herdman agreed with Council Member Brenner, questioned the length of time a short-
term lodging permit would be revoked for a third violation and the purpose of an emergency ordinance
if properties will turnover every four nights, and advised that he stopped renting his properties to
prevent exposing anyone unnecessarily.
Council Member Dixon suggested a 14 -night minimum, which is the isolation period. Council Member
Herdman believed visitors should self -isolate at their own homes.
Council Member Duffield believed what has been proposed was a good compromise and noted this will
not be forever and everyone needs to sacrifice. He questioned allowing the Lido House Hotel to operate,
but not short-term lodgings. Council Member Herdman believed Council should close it if it has the
authority. y
Council Member Brenner explained that hotels are located outside of neighborhoods and believed the
Governor's order did not require hotels to close. City Attorney Harp understood the hotel industry has
checked with the Governor and confirmed that hotels are not closed during the emergency. He indicated
there have been questions raised about that, so he placed a call to the Governor's Office yesterday to
obtain more clarification.
Craig Batley explained that a 14 -night requirement would be a problem because he does not have
14 -night short-term stays, believed there should be an end date so that people can book lodgings for
the summer, expressed concern that, once a moratorium is in effect, people booking dates between now
and May 20 would be in violation of the ordinance.
Barry Saywitz advised that visitors staying one and two nights are booking at the last minute, believed
a four -night minimum will eliminate those bookings, operators are desperately trying to rent lodgings
by lowering the rental fee, Council can accomplish its goals by eliminating one to three night stays,
stated that eliminating the short-term rental market 100% is not going to dramatically make a
difference because operators of short-term lodgings and hotels cannot apply for relief from the Federal
government since they do not have employees, and stated that operators are trying to ensure the
industry does not cave-in so they can resume business.
Council Member Herdman suggested short-term lodging operators seek mortgage relief through their
mortgage lenders.
Motion by Council Member Brenner, seconded by Council Member Herdman, to a) find this
action exempt from the California Environmental Quality Act (CEQA') pursuant to Sections 15269(c)
(the activity is necessary to prevent or mitigate an emergency), 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, Division 6, Chapter 3, because it has no potential for resulting in physical change
to the environment, directly or indirectly; and b) pursuant to City of Newport Beach Charter Section
412, adopt Emergency Ordinance No. 2020-001, An Ordinance of the City Council of the City of Newport
Beach, California, Prohibiting: (1) the Issuance of any New Short -Term Lodging Permit Pursuant to
Newport Beach Municipal Code Chapter 5.95,- and/or (2) the Rental of a Lodging Unit, for a Period of
Thirty (30) Consecutive Days or Less, to Any Person Other than a Medical Professional or Emergency
Responder Coming to the City of Newport Beach to Aid with the COVID-19 Outbreak, including the
amendments to require a four -night minimum stay, current renters can remain, the ordinance
terminates on May 20 with a review for a potential extension or termination on May 12, and
enforcement to be a $1,000 fine for the first violation, a one-year suspension of a permit for the second
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violation, and revocation of a permit with the inability to reapply for the permit for one year for the
third violation.
In response to Council Member Herdman's question, Mayor O'Neill clarified that current occupants
should leave when their booking ends. Council Member Dixon added that the units cannot be re -rented
once the occupants have left. Council Member Brenner suggested the ordinance reflect no new
occupants through the time of the emergency and that units can be occupied only once from now to
May 20. City Attorney Harp understood the intent is to allow operators to rent units for four consecutive
nights. Mayor O'Neill expressed concern that a unit could potentially be rented six times over the next
six weeks, but that is not likely to happen because rentals have decreased 95%. Council Member Dixon
indicated the only active market is for one-night stays, but Council is eliminating the market demand
for short-term rentals in Newport Beach by requiring a four -night minimum until May 20.
Mayor O'Neill noted a second option is to prohibit, until the ordinance is lifted, re -renting units once
the in-place occupants have left. If the motion includes the second option, there is no reason to have a
four -night minimum.
Council Member Dixon stated units that are occupied but scheduled for vacancy in the next few days
cannot be re -rented through May 20. If there is a market for four night minimum stays, the ordinance
should permit that.
Council Member Brenner believed a four -night minimum would defeat the original purpose of the
ordinance. In the past, the one and two -night stays have been the problem. She noted that college
students are home or on spring break, and they will create a problem whether they stay for one night
or a week. The more people are homebound, the more likely they are to take four days and go to Newport
Beach. Rather than telling people to stay home, she indicated that the City is telling them to come and
bring their germs for four days. She expressed hope that a temporary ban on short-term rentals will
kick start the recovery.
Following discussion, Mayor O'Neill restated the motion as if there is a current short-term lodging in
place, that lodging can continue until its contractual end, at which point no additional occupancy of
short-term lodging for commercial purposes is allowed until May 20 or sooner if one of the three
occurrences happen, the only exception is for healthcare workers and first responders, enforcement will
be a $1,000 fine for a first violation, a one-year suspension for a second violation, and revocation with
an inability to apply for reinstatement for a full year for a third violation. Council Member Brenner
clarified that if a rental contract ends and the occupant wants to shelter in place in the unit longer, the
renter can do that.
The maker of the motion and seconder of the motion concurred with the restated motion.
Mayor Pro Tem Avery reiterated that the short-term rental industry is 90% down already.
Substitute motion by Mavor Pro Tem Averv, seconded by Council Member Dixon, to allow
operators one four -night rental until May 20 to give operators some income.
Council Member Herdman expressed concern that allowing that would just rotate potential carriers
through the City.
Council Member Dixon believed it is a fair compromise. She indicated that banning people from the
beaches would be the ultimate fix to this problem, but Council is taking incremental measures and
recognizes the precarious nature of all businesses in the community.
Mayor O'Neill restated the substitute motion that, between today and May 20, a person who
holds a short-term lodging permit and has a current renter can allow the renter to stay in
place. In addition, the licensee and all permittees would be allowed to rent one more time
between now and May 20 for a minimum of four nights.
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City Attorney Harp believed it would be very difficult to enforce an ordinance allowing that exception.
City Manager Leung noted Transient Occupancy Tax reports come out a month later. Mayor Pro Tem
Avery suggested random audits of the reports for enforcement.
Council Member Brenner emphasized the purpose of the ordinance is to limit the exposure of the City's
residents to the virus.
Council Member Dixon proposed limiting occupancy to two people per bedroom. Mayor O'Neill indicated
he does not know how the City would enforce this.
A friendly amendment was made to the substitute motion to only allow two people per
bedroom.
Mayor O'Neill recessed the meeting at 6.05 p.m. and reconvened the meeting at 6:17 p.m. with
all members of the City Council in attendance, except for Council Member Muldoon.
In response to Council questions, Community Development Director Jurjis reported that an inhouse
auditor performs spot checks of property owners' books, but the City has no mechanism to cross-
reference with the 50 online platforms since they will not share information with the City. He noted
that reporting is based on the honor system, the City could require permitholders to list their permit
numbers on platforms, but more importantly, the City could require property owners to share platform
bookings with the City. If operators do not use a platform and have regular customers, the platform is
the only missing link.
Council Member Herdman believed Council Members are losing sight of why they called the special
meeting, which was to try to prevent the spread of the virus and further deaths. He emphasized that
there is no room for compromise during this emergency.
Mayor Pro Tem Avery withdrew the substitute motion.
City Attorney Harp reviewed a redline version of the proposed ordinance, which incorporated the
changes suggested by Council.
Mayor O'Neill clarified that the original motion allows a current occupant to stay through
the end of the rental agreement, that the ordinance will terminate on May 20 or if one of the
three actions occurs sooner, that Council will review the ordinance on May 12, and that the
motion includes enforcement mechanisms. Further, there will be no new rentals between
now and May 20.
With Council Member Muldoon absent, the motion carried 6-0.
VI. ADJOURNMENT - 6:32 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 April 3, 2020, at 3:20 p.m.
Leilani I. Brown
City Clerk
Will O'Neill
Mayor
Volume 64 - Page 355
CITY OF NEWPORT BEACH
City Council Minutes
Regular Meeting
April 14, 2020
I. ROLL CALL - 6:30 p.m.
Present Mayor Will O'Neill, Mayor Pro Tem Brad Avery, Council Member Joy Brenner, Council
via WebEx: Member Diane Dixon, Council Member Duffy Duffield, Council Member Jeff Herdman,
Council Member Kevin Muldoon
In response to Council Member Dixon's question regarding the need to proceed with Items 5, 6 and 8,
City Manager Leung advised that the projects were carefully evaluated and staff will be closely
monitoring expenses. She emphasized the importance of continued maintenance and repair of
infrastructure, explained why the projects are a priority for the City, noted funding has been set aside
for these projects, and stated that building excise funds and equipment replacement funds will be used
for Items 5 and 8.
In response to Council Member Brenner's question regarding Mr. Mosher's written comments relative
to Item 5, City Manager Leung indicated that she will check with the Finance Department and see if an
adjustment to the building excise tax amount.
II. PUBLIC COMMENTS - None
City Attorney Harp reported the City Council would adjourn to Closed Session to discuss the item listed
in the Closed Session agenda and read the title.
III. CLOSED SESSION - Council Chambers Conference Room
A. CONFERENCE WITH LEGAL COUNSEL
EXISTING LITIGATION
(Government Code § 54956.9(d)(1)): 1 matter
Susan Bidart Riddle u. City of Newport Beach & John Vallely
Orange County Superior Court Case No. 30-2015-00808124-CU-WM-CJC; Court of Appeal,
4th Appellate District, Division 3, Case No. G057397
IV. RECESS - 6:31 p.m.
V. RECONVENED AT 7:04 P.M. FOR REGULAR MEETING
VI. ROLL CALL
Present Mayor Will O'Neill, Mayor Pro Tem Brad Avery, Council Member Joy Brenner, Council
via WebEx: Member Diane Dixon, Council Member Duffy Duffield, Council Member Jeff Herdman,
Council Member Kevin Muldoon
VII. CLOSED SESSION REPORT - None
VIII. INVOCATION - Council Member Dixon
IN. PLEDGE OF ALLEGIANCE - Council Member Herdman
X. PRESENTATION
• National Library Week: Newport Beach Public Library's Return on Investment
Mayor O'Neill reviewed the "Seven Coolest Things" about Newport Beach's libraries.
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Regular Meeting
April 14, 2020
XI. NOTICE TO THE PUBLIC
XII. CITY COUNCIL ANNOUNCEMENTS AND ORAL REPORTS FROM CITY COUNCIL ON
COMMITTEE ACTIVITIES
Mayor O'Neill:
• Requested that the formation of a business reopening committee be considered at a future meeting.
XIIL MATTERS WHICH COUNCIL MEMBERS HAVE ASKED TO BE PLACED ON A FUTURE
AGENDA
Evaluation of current budgeted capital projects for potential six-month hold of lower
priority projects due to the fiscal impacts of the COVID-19 global pandemic [Muldoon]
It was the consensus of the City Council to bring this item back at a future meeting.
XIV. PUBLIC COMMENTS ON CONSENT CALENDAR
Jim Mosher, addressing Item 7, inquired whether staff is working with the old vendor or the new vendor
regarding its bond.
Public Works Director Webb reported staff is working with the second vendor regarding the one-year
contract. _
AN
XV. CONSENT CALENDAR
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1. Minutes for the March 18, 2020 Special Meeting and March 24, 2020 City Council Meeting
[100-20201
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. Moved to Current Business
4. Item Removed
CONTRACTS AND AGREEMENTS
5. 2019-2020 Playground Refurbishment Project - Award of Contract No. 7737-1 (20P01)
[381100-20201
a) Find this project exempt from the California Environmental Quality Act (CEQA) pursuant to
Section 15301 -Class 1 (rehabilitation of deteriorated facilities) of the CEQA Guidelines, because
this project results in no expansion of an existing use;
b) Approve the project plans and specifications;
c) Declare the bid submitted by JMJ Construction of Winchester as non-responsive;
d) Award Contract No. 7737-1 to R.E. Schultz for the base bid price of $256,921.50, and Additive
Bid Item No. 1 for $14,700.00 for a total bid price of $271,621.50, and authorize the Mayor and
City Clerk to execute the contract; and
e) Establish a contingency amount of $27,378.50 (approximately 10 percent) to cover the cost of
unforeseen work not included in the original contract.
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City of Newport Beach
Regular Meeting
April 14, 2020
6. Slurry Seal Program - Award of Contract No. 7681-1 (Project No. 20R04) [381100-2020]
a) Find this project exempt from the California Environmental Quality Act (CEQA) pursuant to
Section 15301(c), Class 1 (maintenance of existing public facilities involving negligible or no
expansion of use) of the CEQA Guidelines, because this project has no potential to have a
significant effect on the environment;
b) Approve the project plans and specifications;
c) Award Contract No 7681-1 to Roy Allan Slurry Seal, Inc., for the totalbid price of $1,082,606.20,
and authorize the Mayor and City Clerk to execute the contract;
d) Establish a contingency of $54,000.00 (approximately five percent of total bid) to cover the cost
of unforeseen work not included in the original contract; and
e) Approve Budget Amendment No. 20-042 transferring appropriations of $81,154.00 of Measure
M funding from the Bison Avenue Pavement Rehabilitation Project (Account No. 12201-980000-
19R21) to the Slurry Seal Program Project (Account No. 12201-980000-20R04).
7. Approval and Award of Maintenance and Repair Services Agreement with RD Systems,
Inc. (C-8633-1) [381100-2020]
Remove from the agenda.
S. Approval of a Purchase Agreement with South Coast Fire Equipment, Inc. for the
Purchase of a Type 3 Wildland Fire Apparatus (C-8634-1) [381100-2020]
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 City Council Policy F-14 and approval of a Purchase Agreement with South Coast Fire
Equipment, Inc. for a not to exceed amount of $509,902.44 for the purchase of a Pierce
Manufacturing Type 3 Wildland Interface Fire Apparatus.
Motion by Mavor Pro Tem Averv, seconded by Council Member Herdman, to approve the
Consent Calendar; and noting the removal of Item 3 to Current Business, the removal of Item 7 from
the agenda, and the amendment to Item 8.
The motion carried unanimously.
XVI. ITEMS REMOVED FROM THE CONSENT CALENDAR - None
XVII. PUBLIC COMMENTS ON NON -AGENDA ITEMS
Jaleel Shabaz asked where Orange County and Newport Beach stand regarding the future of technology.
Charles Klobe noted a problem while he was on hold on the phone and inquired whether the Finance
Committee meeting would have public comment from the Community Room or by telephone only.
Jonathan O'Connell thanked Council for not closing the beaches, dissimilar to other cities with more
restrictive mandates. He believed the timeframe used in the data and analysis of restricting vacation
rentals was arbitrary, and asked if this could be reviewed.
Carol Crane thanked Council for moving the City in the right direction during this extraordinary time
and Mayor O'Neill for his letter to the Corona del Mar High School Seniors.
XVIII. PUBLIC HEARINGS
9. Resolution No. 2020-33: Appeal of Planning Commission Approval for The Garden Office
and Parking Structure Proposed at 215 Riverside Avenue (PA2019-023) (Continued from
the March 24, 2020 City Council Meeting) [100-2020]
City Attorney Harp reported that the City Attorney's Office has been working with both the
applicant and the appellant, and they appear to be close to a resolution. He suggested that Council
continue the matter for two weeks to allow the applicant and appellant to resolve their concerns.
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NIX
Susan Hori, applicant's counsel, and Aaron Ehrlich, appellant's counsel, agreed with the suggestion
to continue this item.
Motion by Mavor O'Neill, seconded by Council Member Duffield, to continue the item to the
April 28, 2020 City Council meeting.
The motion carried unanimously.
10. Ordinance Nos. 2020-11 and 2020-12: Introduction of Ordinances to Amend Setback Map
S -IA (PA2019-216) [100-2020]
Motion by Council Member Dixon, seconded by Council Member Duffield, to a) find this
project categorically exempt from the California Environmental Quality Act (CEQA) pursuant to
Section 15305 under Class 5 (Minor Alterations in Land Use Limitations) of the CEQA Guidelines,
because it has no potential to have a significant effect on the environment; b) waive full reading,
direct the City Clerk to read by title only, introduce Ordinance No. 2020-11, An Ordinance of the
City Council of the City of Newport Beach, California, Adopting Zoning Code Amendment
No. CA2019-008 to Amend Setback Map S -IA - West Newport as Set Forth in Section 20.80.040
(Setback Maps) of Title 20 (Planning and Zoning) of the Newport Beach Municipal Code Applicable
to the Property Located at 650116503 Seashore Drive (PA2019-216), and pass to second reading on
April 28, 2020; c) waive full reading, direct the City Clerk to ready by title only, introduce Ordinance
No. 2020-12, An Ordinance of the City Council of the City of Newport Beach, California, Adopting
Local Coastal Program Amendment No. LC2019-007 to Amend Setback Map S -IA - West Newport
as Set Forth in Section 21.80.040 (Setback Maps) of Title 21 (Local Coastal Program Implementation
Plan) of the Newport Beach Municipal Code Applicable to the Property Located at 650116503
Seashore Drive (PA2019-216), and pass to second reading on April 28, 2020; and d) adopt Resolution
No. 2020-34, A Resolution of the City Council of the City of Newport Beach, California, Revoking
Variance No. VA0012 and Modification No. MD2343 Which Will No Longer Be Necessary Upon
Amendment of Sections 20.80.040 (Setback Maps) and 21.80.040 (Setback Maps) of the Newport
Beach Municipal Code for the Property Located at 650116503 Seashore Drive (PA2019-216).
The motion carried unanimously.
11. Professional Services Agreement with Kimley-Horn and Associates, Inc. for Updates to the
General Plan Housing, Land Use and Circulation Elements (C-8635-1) [381100-2019]
Community Development Director Jurjis, Deputy Community Development Director Campbell and
Senior Planner Zdeba utilized a presentation to provide a Regional Housing Needs Allocation (RHNA)
update, discuss the appeal process, the RFP process, the consultant team and scope of work, the
estimated cost, and an ideal timeline for compliance.
In response to Council Member Dixon's question, Community Development Director Juijis reported
that the cost estimate is not deemed excessive, noting staff estimated this would cost approximately
$1 million due to the expensive and time consuming Environmental Impact Report (EIR). Council
Member Dixon congratulated staff for obtaining a grant.
In response to Mayor O'Neill's questions, Community Development Director Jurjis reported the City
cannot file an appeal of the RHNA numbers because it has not received the official numbers. He
added that the City has not received an extension to file its updated Housing Element and reported
that the only individual or agency that can grant an extension of time is the Governor through an
executive order, according to the League of California Cities. Mayor O'Neill believed we are seeing a
different world as far as the drive for density.
Jim Mosher noted the City has a consultant contract for $500,000 still in place and believed members
of the community were disappointed with the consultant's activities. He requested clarification about
how public outreach will be facilitated.
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An unidentified speaker thanked staff for reviewing the timeline and expressed concern regarding
how the public will participate in the process during the current health crisis.
Charles Klobe agreed with concern regarding the contract timeframe and cost.
David Tanner appreciated Council's efforts to conduct business during the pandemic and hoped
Council would consider his written comments he provided via email. Mayor O'Neill noted the
comments have been received.
At Mayor O'Neill's request, Community Development Director Jurjis indicated Kerns and West is the
City's current public outreach consultant, but they have been placed on standby, but staff intends to
continue to use them at the advice of the former General Plan Update Steering Committee. Mayor
O'Neill noted the difficulties of public comment during virtual meetings. Community Development
Director Jurjis advised that staff will rely on the Housing Element Update Advisory Committee
(HEUAC) for the public participation process and noted that public participation is essential. City
Attorney Harp noted that the contract can be amended to change the scope of work.
Motion by Council Member Dixon, seconded by Council Member Brenner, 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, California Code of Regulations, Title 14, Division
6, Chapter 3, because this action will not result in a physical change to the environment, directly or
indirectly; and b) approve and authorize the City Manager and City Clerk to execute a Professional
Services Agreement with Kimley-Horn and Associates, Inc. to prepare the necessary updates to the
General Plan Housing, Land Use, and Circulation Elements in an amount not to exceed $1,217,461,
in a form substantially similar to the agreement attached to the staff report and subject to the review
and approval of the City Attorney's Office.
With Council Member Muldoon voting "no," the motion carried 6-1
12. Novel Coronavirus (COVID-19) Update [100-2019]
City Manager Leung utilized a presentation to discuss the actions taken thus far, City closures,
education and signage, Orange County cases from March 14 to April 14, Newport Beach cases from
March 27 to April 14, the Governor's April 14 announcement of six indicators for modifying the Stay -
at -Home order, and next steps, including monitoring closures and guidelines, fiscal impacts, and
evaluation of impacts to businesses and residents.
Fire Chief Boyles noted the tremendous support from Council, the community and staff, stated that
the Emergency Operations Center (E OC) has been operational since March 16, provided an update
on the County's hospital capacity, reported that modeling indicates that hospitalization and death
rates should peak this week and hoped for a steady decline and a flattening of the curve, disclosed
the transportation of five known COVID-19 patients to the hospital, noted that since March 21,
there were 130 enhanced precaution calls from dispatch, with yesterday being the first day of no
precaution calls, reported overall responses for March and April 2020 decreased by 22% compared
to March and April 2019, noted that in 10 of the last 11 days, the number of cases in the County
rose by single percentage points, informed Council that the Fire Department has enough protective
gear, and reported the City will need to make decisions regarding the Newport Beach Junior
Lifeguard program, recreation programs, and beaches.
Police Chief Lewis reported that there was an unprecedented crime decrease in March, added that
the Police Department is keeping an eye on family -related or domestic violence crimes, and stated
the crime prevention message remains the same.
Mayor O'Neill thanked all residents for following the social distancing guidelines and staff for their
hard work, and stated that current trendlines look positive, even though detailed information about
the spread of the virus remains unknown.
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Council Member Herdman advised residents to be appreciative of staff and Council Members for the
incredible job they are doing during the crisis, expressed his appreciation to District 5 residents for
cooperating and complying with the guidelines, commended the two high school principals for
supporting the Class of 2020 during this hard time, and indicated his two grandchildren at Newport
Harbor High School appreciated the Mayor's letter.
Council Member Dixon expressed her pride in the City and Council's approach during the pandemic
and the positivity of local residents and those across the country coming together and practicing
social distancing. She thanked staff for the additional signage and hoped the community will
continue to follow recommended guidelines in anticipation of the upcoming warm weather
conditions.
In response to Council Member Dixon's question, City Manager Leung indicated that staff will
review information provided by the County about testing and incorporate the information into the
City's website, and noted the County CEO advised her that testing is expected to increase and he
will be taking a planning process to the Board of Supervisors this week. Council Member Dixon
noted Hoag Hospital beds are empty, and people should not be scared to go to the hospital and should
call 911 if they have a serious issue. She thanked the community and the Mayor for his leadership,
and urged workers and residents to listen to the County's recommendation to wear face coverings.
She noted complaints she received about construction workers not wearing face coverings.
Council Member Muldoon thanked the City Manager for the team's long hours and the video and
phone production of the Council meeting. In response to Council Member Muldoon's questions, Fire
Chief Boyles reported the last number for positive cases was 87 in Newport Beach, which climbed
by one or two as of today. He stated that Laguna Beach, Newport Beach and Villa Park are the top
three cities in cases per capita, while Stanton, Seal Beach and Garden Grove are the bottom three
cities in cases per capita. He reported that none of the 120 sworn Fire Department personnel are
symptomatic or have tested positive for COVID-19 and the risk for infection can be minimized with
proper social distancing and hand washing. Council Member Muldoon believed collaboration and
education have been the driving force for flattening the curve, and there are not enough thank you's
for staff's hard work. He encouraged residents not to be fearful to access quality healthcare in the
area, and reported the City will educate everyone on the process for returning to regular life.
Mayor O'Neill indicated Supervisor Michelle Steel has hosted phone calls for mayors in her district
over the last couple of weeks; and the number one complaint from cities outside the area is lack of
access to testing.
Council Member Brenner acknowledged the public's frustration during this constantly evolving
situation and suggested an agenda item regarding resident -only parking during the emergency. She
expressed her appreciation in response to adjustments in beachfront areas, and constructive emails
and phone calls with staff. She displayed photos of crowds on Ocean Boulevard received from em ails
sent to all Council Members at citycouncil@newportbeachca.gov. She commended Mayor O'Neill for
the children's reading video he produced and expressed here appreciation to staff and medical
personnel. In response to Council Member Brenner's question, Police Chief Lewis advised that
closures and other measures have impacted social distancing and face covering compliance, and the
Police Department is working diligently to maintain public safety.
Council Member Duffield thanked the City Manager and staff, and noted that Council supports
them 100% during these unprecedented times. He encouraged everyone to keep going.
Mayor Pro Tem Avery indicated a crisis like this brings out who you really are, who organizations
really are, and who cities really are, and emphasized that one of the things residents can do is be
kind to each other. He stated that Council and staff are working to balance protection and freedom,
and expressed that it is an honor to be a Council Member and a part of the solution even though
times are difficult.
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Mayor O'Neill noted the business community is being decimated right now, and the City has had to
be creative with closures and begin a phased approach in addressing the reopening of businesses.
He stated his proposal to create a Council committee that will allow the business community to
provide input in assisting with the reopening of businesses and getting people back to work. He
thanked the residents, businesses, and staff.
Jim Mosher thanked the City for making the Community Room available during the meeting, noted
the Finance Committee meeting is scheduled concurrently with the Zoning Administrator meeting
on Thursday, encouraged continuing the phone-in option into meetings even after the crisis, and
asked that Council not dispense with staff reports during virtual meetings.
Mayor O'Neill reported that the Finance Committee meeting will be facilitated via WebEx with a
call-in option and a conference room for in-person comments. He recommended the public reach out
to the Finance Director with any questions or concerns.
Jaleel Shabaz commented that some businesses are closed while others have lines of people entering
them, and expressed concern that this can cause the number of cases to increase. He asked how the
closures will affect the future of development, education, and technology.
Jonathan O'Connell believed this crisis is providing a window to see who the leaders really are and
noted that decisions cannot be made out of fear but should represent the majority.
Nick Taglia expressed love for Newport Beach, the libraries, and beaches, and appreciation for how
the City is handling the crisis. He noted that, although wearing face masks are strongly
recommended and there is no mandate in the City, wearing a mask might save someone's life. He
asked about the Council's thoughts about mandating the wearing of face coverings and enforcement.
Charles Klobe reported that Stop Polluting Our Newport (SPON) began holding their meetings via
video conference and received greater participation, suggested that Council consider allowing
audience call-in as a regular component of Council meetings to get greater participation, and
thanked Council Members for their service.
Max Johnson expressed his gratitude for posting signs and closing the Wedge and the M Street
beach entrance, requested staff install more social distancing signs at the L Street beach entrance,
thanked Council Member Dixon and staff for listening to comments from the residents, and
commended City Manager Leung and all City staff during this time.
Buzz appreciated everything that Council has done to help the community through this, hoped the
City is prepared for increased beach guests as the weather becomes nicer, indicated Los Angeles
County has closed its beaches entirely and other cities have mandated wearing masks, and stated
the community needs Council's leadership to ensure it does not make the situation worse.
3. Initiation of Zoning Code and Local Coastal Program Amendments Related to Tattoo
Services, Density Bonus Regulations, Short Term Lodging, and Food and Alcohol Service
in the Industrial Zone [100-2020]
City Attorney Harp clarified that the item is an initiation and nothing is being proposed at this time.
In response to Council questions regarding Resolution No. 2020-35 (Tattoo Services), City Attorney
Harp reported that the Newport Beach Municipal Code (NBMC) is not in line with case law from
the United States Court of Appeals for the Ninth Circuit which concluded that tattooing is an
expressive activity that is protected by the First Amendment, indicated NBMC sections are pre -
Ninth Circuit Court decisions and staff needs to bring the NBMC in line with the Ninth Circuit
Court decision, other appropriate regulations, and current case law, noted that, regarding
Mr. Mosher's comment relative to content neutral discretionary decisions, the Planning Commission
will have all options available to them as long as it is in conformance with the law, and stated that
all items regarding tattoo businesses would go to the Planning Commission to make a
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recommendation to Council, and then Council would consider the items. He confirmed that there is
still the ability for someone to appeal a Zoning Administrator decision to the Planning Commission,
and a Planning Commission decision to the Council.
Council Member Muldoon noted that the NBMC will conform to the U.S. Constitution and case law
from the Ninth Circuit Court with adoption of Resolution No. 2020-35.
Motion by Council Member Muldoon, seconded by Mavor O'Neill, to a) determine this action
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; and b) adopt Resolution No. 2020-35, AResolution of the City Council of the
City of Newport Beach, California, Initiating Amendments to Title 20 (Planning and Zoning) and
Title 21 (Local Coastal Program Implementation Plan) of the City of Newport Beach Municipal Code
Related to Tattoo Services (PA2020-030).
The motion carried unanimously.
Regarding Resolution No. 2020-36 (Density Bonuses), Community Development Director Jurjis
reported that State laws relative to density bonuses change often and the NBMC is currently out of
date. He noted that this request is to update the NBMC to conform with current State laws.
Motion by Council Member Dixon. seconded by Council Member Brenner, to a) determine
this action 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; and b) adopt Resolution No. 2020-36, AResolution of the City Council of
the City of Newport Beach, California, Initiating Amendments to Title 20 (Planning and Zoning) and
Title 21 (Local Coastal Program Implementation Plan) of the City of NewportBeach Municipal Code
Related to Density Bonuses (PA2020-032).
The motion carried unanimously.
Regarding Resolution No. 2020-37 (Short -Term Lodging), Council Member Dixon noted that the City
Council ad hoc committee on short-term lodging will meet shortly and bring recommendations to
Council. Community Development Director Jurjis clarified that staff will return with an update to
the short-term lodging emergency ordinance at the end of May. He noted that the current item is to
initiate NBMC changes that will not be in the update in May, pointed out that Council discussed
imposing a cap, parking requirements, a more restrictive occupant standard, and a minimum night
stay, and reported that proposed amendments will first be considered by the Planning Commission
and then Council.
Motion by Council Member Herdman, seconded by Council Member Brenner, to
a) determine this action 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; and b) adopt Resolution No. 2020-37, A Resolution of
the City Council of the City of Newport Beach, California, Initiating Amendments to Title 20
(Planning and Zoning) and Title 21 (Local Coastal Program Implementation Plan) of the City of
Newport Beach Municipal Code Related to Short Term Lodging (PA2020-048).
The motion carried unanimously.
Regarding Resolution No. 2020-38 (Food and Alcohol Service in the Industrial Zoning District),
Community Development Director Jurjis reported that Council Member Muldoon requested the
item through City Council Policy A -l. He indicated that the NBMC only allows the manufacturing
of food and alcohol in the Industrial Zoning District, not the sale of food and alcohol, and indicated
that staff is requesting Council's input regarding restrictions, which will guide staff in writing the
NBMC change.
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Mayor O'Neill recalled a similar discussion regarding tasting rooms a few years ago and stated his
desire to know the difference between the proposals now and then.
Council Member Muldoon indicated a business would close if Council does not amend the Industrial
Zoning District through Resolution No. 2020-38, reported the business is willing to reduce its hours,
is not a typical drinking establishment, and has a club feel with members. He noted that the
amendment proposes a different rule for areas that are zoned industrial, and suggested that the
proposed hours of operation not conflict with school hours, the maximum occupancy can be set by
staff, the business should only be restricted to serve beer and wine, and food service should be
similar to catering.
Council Member Dixon indicated she made a site visit to the business two years ago and the
circumstances were the same as proposed today. In response to her questions, Community
Development Director Jurjis explained that the establishment has morphed over time, there is an
ongoing enforcement case, the current zoning does not allow food service, and staff has tried to find
a new location for the business pre -pandemic. Council Member Dixon recalled that the Council at
that time unanimously voted against this because of residential parking issues and nearby schools.
Motion by Council Member Muldoon, seconded by Council Member Duffield, to
a) determine this action 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; and b) adopt Resolution No. 2020-38, A Resolution of
the City Council of the City of Newport Beach, California, Initiating Amendments to Title 20
(Planning and Zoning) and Title 21 (Local Coastal Program Implementation Plan) of the City of
Newport Beach Municipal Code Related to Food and Alcohol Service in the Industrial Zoning District
(IG) (PA2020-042).
With Mayor O'Neill, Mayor Pro Tem Avery, and Council Member Dixon voting `ho," the
motion carried 4-3.
Randy Beck indicated he has been in contact with Community Development Director Jurjis, Council
Member Dixon, and others regarding short-term lodging, he did not hear an update about the
emergency ordinance, expressed opposition regarding Resolution No. 2020-37, and noted he sent
correspondence regarding short-term lodging issues.
Mayor O'Neill advised that the purpose of this item was to initiate NEW changes and City Attorney
Harp reported that the City Council ad hoc subcommittee will bring back recommendations for
changes at the Council meeting at the end of May.
XIX. MOTION FOR RECONSIDERATION - None
XX. ADJOURNMENT - 9:34 p.m.
The agenda was posted on the City's website and on the City Hall electronic bulletin board
located in the entrance of the City Council Chambers at 100 Civic Center Drive on April 9,
2020, at 4:00 p.m.
Leilani I. Brown
City Clerk
Will O'Neill
Mayor
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