HomeMy WebLinkAbout04/28/2020 - Regular MeetingCITY OF NEWPORT BEACH
City Council Minutes
Regular Meeting
April 28, 2020
I. ROLL CALL - 6:52 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
II. PUBLIC COMMENTS
Valerie Johnson explained the possible cause for the difference in beach photos used by Police Chief
Lewis and Governor Newsom, expressed support for the proposal to only allow active uses on the beach,
and urged Council to open parking lots and restrooms.
An unidentified speaker encouraged people to support local businesses and favored restricting certain
beach activities or limiting surfing to local residents and those from surrounding cities.
An unidentified speaker expressed disappointment with the vote on closing beaches and suggested
enforcement of face coverings.
An unidentified speaker asked if Council would regulate parking. Mayor O'Neill indicated the City's
website lists where parking is not enforced.
City Attorney Harp reported that Council would adjourn to Closed Session to discuss the item listed in
the Closed Session agenda and read the title.
III. CLOSED SESSION — moved to the end of meeting
A. CONFERENCE WITH LEGAL COUNSEL
EXISTING LITIGATION
(Government Code § 54956.9(d)(1)): 1 matter
Susan Bidart Riddle v. 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 — 6:59 p.m.
V. RECONVENED AT 7:14 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 Avery
IX. PLEDGE OF ALLEGIANCE — Council Member Brenner
X. NOTICE TO THE PUBLIC
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XI. CITY COUNCIL ANNOUNCEMENTS AND ORAL REPORTS FROM CITY COUNCIL ON
COMMITTEE ACTIVITIES
Council Member Herdman:
• Announced he attended the Short -Term Lodging Ad Hoc Committee meetings via teleconference
Council Member Muldoon:
• Announced he has spent time with family and his neighborhood, is practicing social distancing, and
is ready to get back to business
Council Member Dixon:
• Announced the May 6 deadline to apply for vacant Board and Commission seats
Council Member Brenner:
• Attended Short -Term Lodging Ad Hoc Committee meetings, waste recycling meetings, and Finance
Committee meetings with Mayor O'Neill and Council Member Dixon; a meeting with the historic
preservation committee of the Corona del Mar Residents' Association (CdMRA); a meeting via Zoom
of the CdMRA Board of Directors with Mayor O'Neill; and a meeting via Zoom with two students
from Sage Hill High School
• Announced she distributed masks at OASIS Senior Center
• Discussed activities in her district and students' sidewalk art that shares positive messages in light
of the pandemic
Council Member Duffield:
• Announced he has been working on Harbor issues with staff
Mayor Pro Tem Avery:
• Commended Utilities personnel for fixing the water main at Tustin Avenue and Holly Lane, as well
as, Public Works personnel for connecting sidewalks near Laurel Place, Holly Lane, and Margaret
Drive
Mayor O'Neill:
• Attended San Joaquin Hills Transportation Corridor Agency (TCA) board meetings
XII. MATTERS WHICH COUNCIL MEMBERS HAVE ASKED TO BE PLACED ON A FUTURE
AGENDA
0 Consideration of Forming a Business Reopening Committee [O'Neill]
Mayor O'Neill withdrew his request due to Council's adoption of Resolution No. 2020-40 during the
special meeting.
XIII. PUBLIC COMMENTS ON CONSENT CALENDAR
Jim Mosher believed there is no reason for the introduction of Ordinance No. 2020-13 (Item 3) and
believed Council could act on the resolution without changing the Municipal Code.
XIV. CONSENT CALENDAR
READING OF MINUTES AND ORDINANCES
1. Minutes for the April 3, 2020 Special Meeting and April 14, 2020 City Council Meeting
[100-2020]
Waive reading of subject minutes, approve as amended, and order filed.
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2. Reading of Ordinances
Waive reading in full of all ordinances under consideration, and direct the City Clerk to read by title
only.
ORDINANCE FOR INTRODUCTION
3. Ordinance No. 2020-13: Amending Section 6.04.170 Prohibiting Commercial Properties
and Businesses from Disposing of Solid Waste in Public Waste Containers [100-2020]
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) Introduce Ordinance No. 2020-13, An Ordinance of the City Council of the City of Newport Beach,
California, Amending Section 6.04.170 of Chapter 6.04 of Title 6 of the Newport Beach Municipal
Code Pertaining to the Commercial Use of Public Solid Waste, Recyclable Material or Divertible
Material Containers /Bins, and pass to second reading on May 12, 2020.
ORDINANCES FOR ADOPTION
4. Ordinance Nos. 2020-11 and 2020-12: Adoption of Ordinances to Amend Setback Map
S -IA (PA2019-216) [100-2020]
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) Conduct second reading and adopt 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
c) Conduct second reading and adopt 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 -1A - 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).
CONTRACTS AND AGREEMENTS
5. Water Transmission Main Valve Replacement - Notice of Completion for Contract
No. 7539-1 (18W12) [381100-2020]
a) Accept the completed work and authorize the City Clerk to file a Notice of Completion for the
project. On May 28, 2019, the City Council found this project exempt from the California
Environmental Quality Act (CEQA) pursuant to Section 15302(c);
b) Authorize the City Clerk to release the Labor and Materials Bond 65 days after the Notice of
Completion has been recorded in accordance with applicable portions of the Civil Code; and
c) Release Faithful Performance Bond one year after acceptance by the City Council.
6. Three Year Software License Agreement for Microsoft (C-8636-1) [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) Authorize the Mayor and City Clerk to execute a Software License Agreement with Dell Inc. for
a three-year period for all Microsoft products in the amount of $160,461.60 per year.
Motion by Mayor Pro Tem Avery, seconded by Council Member Brenner, to approve the
Consent Calendar; and noting the amendments to Item 1.
The motion carried unanimously.
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XV. ITEMS REMOVED FROM THE CONSENT CALENDAR - None
XVI. PUBLIC COMMENTS ON NON AGENDA ITEMS
Scott Carpenter commended Council on its beach closure vote and indicated that the projected
occupancy rate for short-term lodging in Newport Beach is 14% through May 15.
An unidentified speaker inquired about the date the Balboa Island boardwalk will reopen and expressed
concerns about the dangers of pedestrians walking in the streets due to the related closure.
Charles Klobe believed the audio and video quality of last week's Council meeting were better than
tonight's, noted the School Board has not yet considered the Ensign Intermediate School project, and
stated that the link to public correspondence for Item 9 on the City's website is broken.
XVII. 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) [100-20201
Community Development Director Jurjis referenced a presentation and detailed the vicinity map,
project plans, Planning Commission approval and conditions, reasons for appeal, public notice and
traffic analysis, geotechnical feasibility, use of a photometric study to determine lighting impacts,
compliance with Municipal Code standards for noise and the General Plan, California
Environmental Quality Act (CEQA) Class 32 Exemption and piecemealing, noted there would be no
impacts to the oak tree on Cliff Drive, discussed proposed modifications to Conditions of Approval
Nos. 61 (additional trellis), 62 (lighting turn-off time), and 63 (roof deck closure time), and the
addition of Conditions of Approval Nos. 65 (City Arborist review of plans) and 66 (arborist
observance of construction), reviewed staff recommendations, and noted that the revised conditions
of approval were distributed.
In response to Council Member questions, Community Development Director Jurjis indicated the
parking structure in the project at Dover Drive and Pacific Coast Highway is covered, discussed a
10:00 p.m. closing time for the structure, noted the difficulty in enforcing a motorcycle prohibition,
reported that a noise study found no additional mitigation measures or conditions are needed for
the upper deck, and confirmed that the project complies with land use, zoning, and design
requirements.
Scott Laidlaw, architect and Applicant, advised that the proposed plan conforms to the General Plan
and stated that the existing 8,000 -square -foot commercial building will be reduced in size to 2,750
square feet., He utilized a presentation to display a rendering of the project, landscaping
enhancements, and existing and proposed views of the site and of the existing oak tree location.
Susan Hori, counsel for Applicant, reviewed community outreach, noted a 50 -page CEQA analysis
and an arborist report were provided, discussed inaccuracies therein, confirmed that the project will
not impact the wetland or the existing oak tree, and indicated the project would not have any
significant impacts to traffic, noise, air or water quality.
In response to Mayor Pro Tem Avery's questions, Mr. Laidlaw stated that the new building will have
20 parking spaces on the lower level and 20 on the upper level to accommodate the rear trellis.
Ms. Hori added that the parking structure will be available to other entities through private
arrangements.
Aaron Ehrlich, Appellants' counsel, utilized a presentation to display where the four Appellants
reside in relation to the project and discussed their request to have the project reduced so it is
consistent with the surrounding area.
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Due to technical difficulties, Mayor O'Neill recessed the meeting at 8.54 p.m. and
reconvened at 8:56 p.m. with all members of the City Council in attendance.
Mr. Ehrlich continued his presentation, stating both the Applicant's projects are related and should
be considered at the same time, discussed issues with the consistency of the Coastal Development
Permit, stated reasons the project requires discretionary approval, a conditional use permit, and
conditions of approval, and reported on requirements contained in the Appellants' easement if
further CEQA review does not occur. He further presented non-negotiable starting points for
additional conditions of approval, including erecting solid walls with no voids for the portions of the
project that back up to the Appellants' homes, installing a roof or complete covering over the upper
level of the structure, developing an appropriate aesthetic design that addresses light, noise and
glare if the covering is other than a conventional roof, requiring a limit on the number of cars allowed
to park on the upper level to equal the number of spaces available, prohibiting motorcycles on the
upper level, and requiring that the upper level can only be used for parking.
Hal Woods, Appellant commended the Applicant's attention to detail and respect for the neighbors'
quality of life, safety and property rights, and stated that he could support the project if the
conditions outlined by Mr. Ehrlich are included.
Ernie Castro, Appellant, expressed disappointment that the hearing was not postponed due to the
Coronavirus, believed the project should only require 15 ground parking spaces, the parking
structure would serve restaurant patrons late into the evening, and did not believe other parking
structures have been approved in close proximity to residential properties.
Due to technical difficulties, Mayor O'Neill recessed the meeting at 9.19 p.m. and
reconvened at 9.21 p.m. with all members of the City Council in attendance.
In response to Mayor O'Neill's question, City Attorney Harp indicated the technical issues could
result in a due process argument because someone may not have heard everything that was said.
He stated that it might be best to continue the item. Mayor O'Neill apologized for the technical
issues.
Motion by Mayor O'Neill, seconded by Council Member Brenner, to continue the item to the
May 12, 2020 City Council meeting.
The motion carried unanimously.
Mayor O'Neill recessed the meeting and 9:26 p.m. and reconvened the meeting at 9:38 p.m.
City Clerk Brown took roll call, as follows:
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
Mayor O'Neill recommended continuing Items 10 and 14 due to the technical issues that have been
occurring during the meeting.
10. Ordinance No. 2020-14: Terminating Non -Exclusive Commercial Solid Waste Franchises
[241100-20201
Motion by Mayor O'Neill, seconded by Council Member Herdman, to continue Item 10 to the
May 12, 2020 City Council meeting.
Jim Mosher inquired about the public hearing on granting a solid waste franchise under a new
agreement, as Council previously adopted a resolution indicating the hearing would be tonight.
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The motion carried unanimously.
11. Resolution No. 2020-39: Authorization to Issue Obligations by the California Municipal
Finance Authority to Benefit Harbor Day School Project [100-2020]
In response to Council Member Dixon's question, Finance Director Matusiewicz reported the item
does not represent an obligation for the City, and explained that this is an opportunity for an entity
to utilize tax exempt bonds.
Mayor O'Neill opened the public hearing.
Jim Mosher expressed opposition to the item, believed the tax-exempt status should be reserved for
City uses, and expressed the opinion that granting this to private investors could jeopardize the
City's ability to use the tax-exempt status.
Paul Casey, member of the Harbor Day School Board of Trustees, discussed the proposed use of
funds and access to financing, and requested approval.
Charles Klobe believed communicating with Council via teleconference is difficult for him since
there is no reciprocity.
Hearing no further testimony, Mayor O'Neill closed the public hearing.
Motion by Mayor O'Neill, seconded by Council Member Herdman, 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. Alternatively, find the approval of this resolution is not a
project under CEQA Regulation Section 15061(b)(3) because it has no potential for causing a
significant effect on the environment; and b) adopt Resolution No. 2020-39, AResolution of the City
Council of the City of Newport Beach, California, Approving the Making of One or More Loans in a
Principal Amount Not to Exceed $55,000,000 for the Purpose of Financing the Costs of Certain
Improvements to a School Commonly Known as Harbor Day School and Certain Other Matters
Relating Thereto, to provide for the financing of the Harbor Day School construction project in
satisfaction of the requirements of TEFRA, Internal Revenue Code of 1986 and the California
Government Code Section 6500.
With Council Member Muldoon voting "no," the motion carried 6-1.
XVIII. CURRENT BUSINESS
12. Approval of a Service Agreement for Street Sweeping Services with Jonset Corporation
dba Sunset Property Services (C-8637-1) [38/100-2019]
Utilities Director Vukojevic utilized a presentation to discuss the request for proposals, staffs
recommendation, the budget impacts, and on -boarding and transitioning to Sunset Property Services.
In response to Council questions, Utilities Director Vukojevic indicated staff sought assurances from
the contractor that they can deliver service at the provided price, noted that their pricing is
reasonably lower in comparison to those charged in other cities, stated that the plan is to keep all
residential routes the same and transition slowly so the only differences to residents will be the trucks
and the company, advised that the existing machines used by Athens Services are adequate but are
10 years old, reported that the City will have 2021 sweepers with the new contract that are powered
by Compressed Natural Gas (CNG), thus reducing noise, explained the timing for street sweeping,
coordination with the Police Department for enforcement and traffic control, and noted that 40% of
the City is posted for street sweeping.
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Andrea Howhannesian, Sunset Property Services, introduced the company and discussed its
background and on -boarding with the City.
Gary Clifford, Athens Services, stated they are the current street sweeping company, asked Council
to reconsider the recommendation and award the contract to Athens Services, noted they received
the highest technical score of all the bidders, and expressed his skepticism that a company could
perform well for $700,000 per year.
Jeff Newman expressed his desire for keeping the same street sweeping schedule.
Charles Klobe believed the delta between Athens Services' original $500,000 contract warrants
discussion and suggested staff explore different contract terms before awarding the contract.
In response to Council questions, Utilities Director Vukojevic advised that staff met with Sunset
Property Services twice, called all their references, and compared pricing of other cities; reported that
the current service costs about $14 per mile while the new price will be $19 per mile; indicated other
cities pay $14-$24 per mile, confirmed that staff is confident with the recommendation; discussed the
technical scores, and stated that if a bidder did not have a high enough technical score, the bid was
not considered.
Motion by Mayor Pro Tem Avery, seconded by Council Member Herdman, to a) determine
this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections
15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical
change to the environment, directly or indirectly; and b) approve the Services Agreement with Sunset
Corporation dba Sunset Property Services, for street sweeping services for a ten-year term with the
first year annual not -to -exceed amount of $775,000 and a total not -to -exceed amount of $8,885,000
over the ten-year agreement, and authorize the Mayor and City Clerk to execute the Agreement.
The motion carried unanimously.
13. COVID-19 Pandemic Estimated Financial Impact on City Revenue and Recommended
FY 2019-20 Budget Amendment [100-20191
Finance Director Matusiewicz utilized a presentation to provide an overview of financial impacts and
a city comparisons of the top three revenue sources.
In response to Council Member Muldoon's questions, Finance Director Matusiewicz indicated 60% of
Anaheim's revenues are based on Transient Occupancy Tax (TOT) and sales tax, and Costa Mesa's
revenues are tied to sales tax. He discussed Newport Beach's sales tax revenue, noted that
restaurants are seeing a 45%-75% reduction in revenues, and staff presumes the City will see only
5% of the tax revenues it normally receives from hotels.
Mayor O'Neill expressed his opinion that Proposition 13 protects many cities during various cycles of
the economy.
Finance Director Matusiewicz continued his presentation, discussing General Fund revenues and a
Fiscal Year (FY) 2019-20 summary.
Council Member Muldoon commended City Manager Leung for her leadership in reducing
expenditures.
Finance Director Matusiewicz highlighted the FY 2020-21 revenue reductions and budget balancing
readiness.
Council Member Muldoon believed a large part of using contingency reserves, as needed, could be
filled by development agreements, explained the City's discretionary pension funding, and indicated
service level cuts are paid for by the ability to open businesses cautiously and draft a plan to revive
the economy.
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Mayor O'Neill recommended a look at the Finance Committee presentation for in-depth information,
noted that deferring capital funding and spending will be reviewed with the Capital Improvement
Program (CIP) (Item 14), and stated the more the City can save, less will be removed from the pension
fund.
Finance Director Matusiewicz continued the presentation with a discussion of deferred capital
funding and spending, reduced capital funding of $16.9 million, and General Fund savings.
City Manager Leung referenced the presentation to review grant funding programs, detailed
community and human services grants, special event support, cultural arts grants, and signature
events. She requested Council direction regarding continuing with the current funding amounts or
adjusting them, and reviewed the budget process timeline.
Mayor O'Neill recommended decreasing community and human service grants by $20,000. Council
Member Muldoon concurred and suggested elimination of the Balboa Island Museum & Historical
Society grant. Council Member Dixon supported giving the City Manager direction to reduce the
allocation for community and human service grants by $20,000. Council Member Brenner expressed
concern about reducing the grants when the community is suffering. Mayor O'Neill clarified his
recommendation and the ability to amend the budget in the next fiscal year.
A straw poll vote of 7-0 supported Mayor O'Neill's recommendation.
Mayor O'Neill recommended decreasing special event support to $45,000 due to the likelihood of event
cancellations.
A straw poll vote of 7-0 supported Mayor O'Neill's recommendation.
Mayor O'Neill recommended reducing cultural arts grants by $10,000.
A straw poll vote of 7-0 supported Mayor O'Neill's recommendation.
Mayor O'Neill recommended maintaining the signature events allocation.
A straw poll vote of 7-0 supported Mayor O'Neill's recommendation.
Jim Mosher suggested eliminating Council's discretionary grants next year, noted the Transient
Occupancy Tax is both a revenue and an expense, and inquired about direction to Visit Newport
Beach.
Motion by Mayor O'Neill, seconded by Council Member Muldoon, to a) determine this action
is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2)
and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to
the environment, directly or indirectly; and b) approve Budget Amendment No. 20-044 changing
certain budgeted revenue and expenditure estimates for FY 2019-20.
The motion carried unanimously.
14. Review of the Adopted Fiscal Year 2019-20 Capital Improvement Program (CIP) Budget
[100-20191
Motion by Mayor O'Neill, seconded by Council Member Muldoon, to continue the item to the
May 12, 2020 City Council meeting.
The motion carried unanimously.
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15. Novel Coronavirus (COVID-19) Update [100-2019] - None
III. CLOSED SESSION
Without objection, Mayor O'Neill suggested discussing the Closed Session item at the May 12, 2020 City
Council meeting.
XIX. MOTION FOR RECONSIDERATION - None
XX. ADJOURNMENT - 10:59 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 23,
2020, at 4:00 p.m.
ac
a J "
Leilani I. Brown
City Clerk
D
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Will Neill
Mayor
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