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HomeMy WebLinkAbout01 - MinutesH. IV. September 26, 2017 Agenda Item No. 1 CITY OF NEWPORT BEACH City Council Minutes Study Session and Regular Meeting September 12, 2017 ROLL CALL - 5:30 p.m. Present: Council Member Brad Avery, Council Member Diane Dixon, Council Member Jeff Herdman, Council Member Will O'Neill, Council Member Scott Peotter, Mayor Pro Tem Duffy Duffield, Mayor Kevin Muldoon CURRENT BUSINESS SS1. Clarification of Items on the Consent Calendar - SS2. SS3. Proclamation Designating September as Catherine Smith and Chiemi Lee th Alzheimer's Orange County and the distributed a handout. Mayor Muldoon and Ms. Lee. Proclamation Designating Newport Beach Historical 11 Bernie Svalstad, Pre upcoming anniversary read and presented th4 Jim Mosher comm however, believed City Attorney Harp a discuss the items as l Awareness Month City, pr9yided information relative to went (alzoc.org, 844 -HELP ALZ), and ,,esented the proclamation to Ms. Smith as the 50th Anniversary for the >rt Beach Historical Society, discussed their 'istory, on September 22, 2017. Mayor Muldoon Svalstad. ttorney on the expanded description for Closed Session Item IV.B; be discussed in open session. ed that the City Council would adjourn to Closed Session to the Closed Session agenda and read the titles. CLOSED SESSION - Council Chambers Conference Room A. CONFERENCE WITH LABOR NEGOTIATORS (Government Code § 54957.6) Agency Designated Representatives: Dave Kiff, City Manager, Carol Jacobs, Assistant City Manager, Barbara Salvini, Human Resources Director, Brian P. Walter and Peter Brown; Labor Negotiators. Employee Organizations: Newport Beach City Employees Association (NBCEA); Newport Beach Firefighters Association (NBFA); Newport Beach Police Association (NBPA); Newport Beach Police Management Association (NBPMA); and Newport Beach Professional and Technical Employee Association (NBPTEA). B. CONFERENCE WITH LEGAL COUNSEL ANTICIPATED LITIGATION (Government Code § 54956.9(d)(2) (e)(2)): 9 matters Volume 63 - Page 349 City of Newport Beach Study Session and Regular Meeting September 12, 2017 The Newport Beach Police Management Association (NBPMA), the Newport Beach Police Association (NBPA), the Newport Beach Firefighters Association (NBFA), the Laborers International Union of North America Local 777 (as affiliated with and on behalf of the Newport. Beach Professional and Technical Employees Association (NBTEA) and Newport. Beach City Employees Association (NBCEA)), on behalf of the current and former members of said unions, as well as Vladimir Anderson, Robert Salerno, and John Pallas, in their individual capacities, are aware of the United States Court of Appeals for the Ninth Circuit's decision in the case of Flores v. City of San Gabriel (9th Cir. 2016) 824 F.3d 890 which may result in litigation against: the City of Newport. Beach related to the calculation and payment of overtime compensation. C. CONFERENCE WITH LEGAL COUNSEL ANTICIPATED LITIGATION - INITIATION OF LITIGATION (Government Code § 54956.9(d)(4)): i matter RECESS - 5:44 p.m. ROLL CALL Present: Council Member Brad Avery, Council ianeDixon, Council Member Jeff At Peotter, Mayor Pro Tem V,UU111;111Y1u111Vu1 V 1Vu111. • Attended the OASIS Talent. Show, Movies in the Park at Marina Park, the ACC -OC Public Safety Forum, Newport. Harbor High School's Grand Opening of the new stadium, and the Stephen Siller Tunnel to Towers 5K • Announced the Battle of the Bay high school football game on September 15, 2017; the Newport Coast Community Center's 10 year anniversary celebration on September 16, 2017 from 11:30 a.m. to 2:00 p.m., and the Newport Mesa Unified School District's public hearings relative to changing the trustee boundaries Council Member Dixon: • Announced the Balboa Trolley served 23,560 passengers over its 26 day period, 1,500 people attended the concert at Marina Park, the new story time and concierge service at Marina Park, the Mem.ori.es in the: Making art exhibit at. the Central Library, the Finance Committee will be meeting on September 14, 2017, at 3:00 p.m., and the District 1 Town Hall meeting on September 18, 2017, at 6:30 p.m. at Marina Park • Attended Green on the Green Eco Expo • Met with the CalPERS Investment Committee, as the ACC -OC Finance Chair, on August 25, 2017, in Sacramento to discuss the unfunded pension liability issue • Reminded stand up paddle boarders they are required to wear life vests and carry whistles Volume 63 - Page 350 City of Newport Beach Study Session and Regular Meeting September 12, 2017 Council Member Avery: • Attended the Citizens' Police Academy graduation • Introduced Jose Ortiz, a Junior at Newport Harbor High School that is interested in local government, whom Councilmember Avery will be mentoring during the school year Mayor Pro Tem Duffield: • Announced the success of the trial transient mooring field • Commended Harbormaster Durgan and his staff for their work in the Harbor XIII. PUBLIC COMMENTS ON CONSENT CALENDAR 2. Reading of Ordinances Waive reading in full of all ordanan6es under consideration, and direct the City Clerk to read by title only. RESOLUTIONS FOR 3. Authorize SubxaaittaI of'sl Local Coastal Program Amendments to the Coastal Commission [.X00-20171 a) Determine' LCP An-aendt hent No. LC2013-002 and No. LC2017-002 are statutorily exempt from the California Environmental Quality Act. (CEQA) pursuant to Section 15265(x)(1) of the California Code—bf'Regulations, Title 14, and Chapter 3 of the Coastal Act and LCP Amendment No. LC2017-003 is exempt from CEQA pursuant. to Public Resources Code Section 21080.17 and CEQA Guidelines Section 15282(h); and b) Adopt Resolution No. 2017-56, AResolu.t.ion of the City Council of the City of Newport Beach., California, Authorizing the Submittal of Certified Local Coastal Program Amendments to the California Coastal Commission (PA2013-057, PA2017-047, and PA2007-069), including the amended Exhibit A to the resolution. 4. Resolution No. 2017-57: Approving the Side Letter Agreement with the Newport Beach Police Management Association (C-2932) [38/100-20171 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) Adopt. Resolution No. 2017-57, A Resolu.ti.onof the City Council of the City of Newport Beach, California,, Approving the Side Letter Agreement to the 2015-I8 Memorandum of Understanding between: the City of Newport Beach Police Management. Association. Establishing Motor Officer Coinpensa.ti:on Provisions. 5. Resolution No. 2017-58: Amending the Term of Citizen Appointees and Changing the Meeting Schedule of the Finance Committee [100-20171 Volume 63 - Page 351 City of Newport Beach Study Session and Regular Meeting September 12, 2017 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) Adopt amended Resolution No. 2017-57, A Resolution of the City Council of the City of Newport. Beach., California, Approving the Side Letter Agreement to the 2015-18 Memoran.du.m. of Understanding between the City of Newport Beach Police Management Association Establishing Motor Officer Compensation, Provisions. CONTRACTS AND AGREEMENTS 6. Slurry Seal Program FY 2016-2017 - Notice of Completion for Contract No 8273-1 (Project No. 171104) [38/100-20171 a) Accept the completed work and authorize the City Clerk to file a Notice of Completion for the project. On March 28, 2017, the City Council found this project exempt from the California Environmental Quality Act (CEQA) pursuant to Class 2 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 Civil Code; and c) Release Faithful Performance Bond one (1) year after acceptance by the City Council. 7. Big Canyon Restoration and Water QualitysolljmprovCnient Project — Notice of ...................:... Completion for Contract No. 8111-1 (P.r.oject Na 1,6X12) [38/100-20171 a) Accept the completed work and authorize the City:M to file a Notice of Completion for the project. On May 10, 2016, the City; Council adoptecl Resolution No. 2016-58 adopting Mitigated Negative Declaration No. ND2tl1ti 00 (SCH# 2016031011), pursuant to the California Environmental Quality Act (CEQA) and City Council Policy K-3; b) Authorize the City Clerk ,:t relay e the Labor and Materials Bond 65 days after the Notice of Completion has been recorded izz accordance with applicable portions of the Civil Code; and c) Release Faithful Performance Bond one (1) year after acceptance by the City Council. Semeniuk Slough Masntrenance Dredging Project — Notice of Completion for Contract No. 3636B (Project No. 16X17) [8/100-2017] a) Accept the completed wi6a and"authorize the City Clerk to file a Notice of Completion for the project. On October 2;5,2916, the City Council found this project exempt from the California Environmental Quality Act (CEQA) pursuant. to Section 15304(H) (Minor Alterations to Land); 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 the Faithful Performance Bond one (1) year after acceptance by the City Council. 9. Central and Mariners Libraries Restrooms Rehabilitation Project — Notice of Completion — Contract No. 8135-1 (Project No. 15F02) [38/100-20171 a) Accept the completed work and authorize the City Clerk to file a Notice of Completion for the project.. On November 22, 2016, the City Council found this project exempt from the California Environmental Quality Act, (CEQA) pursuant to Section 15301(a); 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 (1) year after acceptance by the City Council. 10. Approval of Professional Services Agreement with Anchor QEA, LLC for Harbor Wide Sediment Sampling Necessary for the City's Regional General Permit (RGP-54) for Dredging in the Nearshore Areas Under Residential Slips and Commercial Marinas (C-8518-1) [38/100-20171 Volume 63 - Page 352 City of Newport Beach Study Session and Regular Meeting September 12, 2017 a) Determine that the action is exempt from the California Environmental Quality Act (CEQA) pursuant. to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines because it will not result in a physical change to the environment, directly or indirectly; b) Approve a Professional Services Agreement with Anchor QEA, LLC for nearshore sediment sampling services at a not -to -exceed fee of $280,305.00, award the Agreement pursuant to a single source justification, and authorize the Mayor and City Clerk to execute the Agreement: and e) Approve Budget. Amendment No. 18BA-007 transferring $280,305.00 from Account No. 10001-980000-181407 (Harborwide Dredging Planning) to Account No. 10001-980000- 18H01(Regional General Permit - RGP54). 11. Approval of Amendment No. 2 to Professional Consulting Services, Inc. for Big Canyon Res Treatment Improvements (Project No. 16W13) (C-6 a) Determine that the action is exempt from the Califon pursuant. to Sections 15060(c)(2) and 15060(c)(3) of V result in a physical change to the environment, curet b) Approve Amendment No. 2 to the current Prpfessi Consulting Services, Inc. to add $42,452.00 to thej construction support services, and ;authorize th Amendment No. 2 of the Agreement. an Services Agreement with Stantec ervor Flow Metering Vault and 222)138/100-2017] 46A., vironmental Quality Act. (CEQA) CEQA Guidelines because it will not v or indirectly; and zal Services Agreement, with Stantec Bement to fund necessary design and Mayor and City Clerk to execute ment with Park West Landscape of Medians and Roadsides (C-5959) pt frbrn_ the California Environmental Quality Act (CEQA) LAI 1;:5060(c)(3) of the CEQA Guidelines because it will not extvinonment, directly or indirectly; and th Park West Landscape Maintenance, Inc. for landscape sides, increasing the compensation limits by $2,037,791 for the Mayor and City Clerk to sign the agreement. 13. Approval of Agreement with Pacific Plumbing Company of Santa Ana for Plumbing Services (C-85194) [MOO -2017] __ .............. 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) Approve Agreement, with Pacific Plumbing Company of Santa Ana for Plumbing Services for a three-year term and a total amount not. -to -exceed $432,000, and authorize the Mayor and City Clerk to sign the agreement. 14. Approval of Agreement with Surfside Restoration & Waterproofing, Inc. for Seawall Repair Services (C-8520-1) [38/100-2017] 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) Approve Agreement with Surfside Restoration & Waterproofing, Inc. for Seawall Repair Services for a three-year term and a total amount. not -to -exceed $300,000, and authorize the Mayor and City Clerk to sign the agreement. 15. Acceptance of 2017/2018 State of California, Office of Traffic Safety DUI Enforcement, Awareness and Traffic Safety Programs Grant PT18102 (C-8201-2) [38/100-2017] Volume 63 - Page 353 City of Newport Beach Study Session and Regular Meeting September 12, 2017 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; b) Authorize the City Council to accept a $300,000 Selective Traffic Enforcement Program ('`STEP") award granted to the Newport Beach Police Department by the OTS per Council Policies F-3 and F-25. To comply with Council Policy F-3, City Council must formally accept the award of $300,000 and create a new appropriation to expend the money; and c) Approve Budget Amendment No. 18BA-004 increasing Police revenue estimates and expenditure appropriations by $300,000. 16. Agreement with All City Management Services, Inc. for Crossing Guard Services (C-8251-1) [38/100-20171 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) Approve a Services Agreement with All City Management. Services, Inc. of Santa Fe Springs, California, for crossing guard services at a not to exeeed +cost of $922,406.40, and authorize the Mayor and City Clerk to execute the Agreement. MISCELLANEOUS 17. Planning Commission Action Report for the August 179 2017 Meeting [100-20171 Receive and file. 18. City Hall and Limited Off -Site Holiday Closure (Beginning on Monday, December 25, 20. Appointment of Board M- er and Alternate Board Member to the Metro Cities Fire Authority [100-2017f a) 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) Appoint. the Assistant City Manager as the voting member and the Fire Chief as the Alternate. The Metro Cities Fire Authority rotates Fire Chiefs on the Board every two years. When the Newport Beach Fire Chief is eligible to be on the Board as a voting member, the Assistant. City Manager will be the alternate. 21. Appointment to the Aviation Committee [100-20171 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) Confirm Council Member Peotter's appointment of Jeffrey Cole as the District 6 Representative Member to the Aviation Committee. Motion by Mayor Pro Tem Duffield seconded by Council Member Peotter, to approve the Consent Calendar, except for the item removed (Item 19). The motion carried by the following roll call vote: Volume 63 - Page 354 City of Newport Beach Study Session and Regular Meeting September 12, 2017 Ayes: Council Member Herdman, Council Member Avery, Council Member Dixon, Council Member Peotter, Council Member O'Neill, Mayor Pro Tem Duffield, Mayor Muldoon XV. ITEM REMOVED FROM THE CONSENT CALENDAR XVI. 19. Budget Amendment to Accept a Check from the Newport Beach Public Library Foundation and Appropriate Funds to the Library's Fiscal Year 2017/2018 Maintenance and Operation Budget 1100-20171 Council Member O'Neill commended the Newport. Beach Library Foundation and the Friends of the Newport. Beach Library for everything they do for the City's library system, and announced what programs the Foundation's donation will be used for. Moved by Council Member O'Neill seconded by Council Member Peotter, to a) determine that the action is exempt from the California Environmental Quality Act. (C - 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} approve Budget Amendment No. 18BA-005 to increase revenue estiw tes by $155,025 in Account 0106051- 511085 (Library Foundation Donations) and to, increase exp6ti iture estimates by the same amount in Division 0106051 (Library Foundatioo Division01(160604 (Literacy Services). The motion carried by the following roll cq.0 vote: Ayes: Council Member Herdman, Council M.fnber Avery, Council Member Dixon, Council Member Peotter, Council Member EQ'Neill, Maydr Pro Tem Duffield, Mayor Muldoon George Lesley announced the 'Newpof Beach Chamber of Commerce's 56th Annual Sandcastle Contest at the Corona del Mar St 10, October 1, 2017, and invited everyone to attend (newportbeach.com/evonts}, He also commended the City for having the Balboa Trolley and relayed his experience on the tralley on August 0, 2017. Bob Rush discussed a 1?ublic R(" ds Act (PRA) request he submitted which asked for an "Enemies List" and provided background relative to the request. Mayor Muldoon and City Manager Kiff stated they were not aware of such ..list. Richard Newhouse discussed the storage facility fire that occurred last year, showed Council photos of the incident, and requested an independent report about the police and fire departments' response times. He also discussed the Hixson Metal Finishing fire that occurred 20 years ago. George Schroeder commended the library for initiating the concierge service at Marina Park. Bernie Svalstad, President of the Newport. Beach Historic Society, announced that they are looking for people to provide an oral history or artifacts to the Society and announced their upcoming 50th Anniversary event. on September 22, 2017, at the Balboa Pavilion. Ty Hansen showed pictures of the storage facility fire that occurred on November 11, 2016, and requested an independent investigation. XVII. ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES Council Member Herdman announced attending the Water Quality/Coastal Tidelands Committee meeting and expressed hope that the Committee could provide a presentation of their work during an upcoming Study Session. Volume 63 - Page 355 City of Newport Beach Study Session and Regular Meeting September 12, 2017 XVIII. PUBLIC HEARINGS 22. Community Development Block Grant Program Year 2016-2017, Consolidated Annual Performance and Evaluation Report (C-8209-3) [100-20171 Mayor Muldoon opened the public hearing. Jim Mosher asked what entity receives the report and if the City receives feedback on its sul.)mittal. In response to Mr. Mosher's questions, Principal Planner Campbell and Consultant Whited of LDM Associates discussed how the reports are generated, confirmed that the $1 million reflects the proceeds from the sale of the Balboa Theater, and indicated that. the $2.4 million is an error in HUD's database. Hearing no further testimony, Mayor Muldoon closed the public hearing. Council Member O'Neill requested and received clarification from Principal Planner Campbell about how the funds are used by the Council on Aging and Human Options. Motion by Council Member O'Neill, seconded<b'Y Council Member Dixon, to a) determine that the action is exempt from the California E"'fio .m -ental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA"Guidelines elines because it will not result in a physical change to the environment dikbk y or indirectly; b) approve the Program Year 2016- 2017 CAPER; and c) direct the City Manago.r or his designee to submit the Program Year 2016- 2017 CAPER to the U.S. Department. of H.64snlg and Urban Development (HUD). The motion carried by the following roll call -ote: Ayes: Council Member Herdfnan, Council Member Avery, Council Member Dixon, Council Member Peotter, COUricA Memh` O'Neill, Mayor Pro Tem Duffield, Mayor Muldoon 23. Amendments to Setback Maps 5-3A and S -3B (PA2016-066) [100-20171 Mayor Muldoon opened the public hearing. Hearing no testimony, he closed the public hearing. Council Member Dixon commended staff for being proactive after discovering the issues with the maps. Motion by Council Member Dixon seconded by Council Member O'Neill, to a) find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15305 of the CEQA Guidelines, Class 5 (Minor Alterations in Land Use Limitations) because it has no potential to have a significant impact on the environment; b) introduce Ordinance No. 2017-13, An Ordinance of the City Council of the City of Newport Beach., California, Amending the Newport Beach Municipal Code Related to Certain Front Yard, and Side Yard Setbacks (PA2016-066), and pass to second reading on September 26, 2017; and c) adopt Resolution No. 2017-59, A Resolution of the City Council of the City of Newport. Beach, California, Authorizing the Submittal of Local Coastal Program Amendment No. LC2017-004 to the California Coastal Commission. Amending the Newport Beach Municipal Code Related to Certain. Front Yard anal Side Yard Setbacks (PA2016-066). The motion carried by the following roll call vote: Ayes: Council Member Herdman, Council Member Avery, Council Member Dixon, Council Member Peotter, Council Member O'Neill, Mayor Pro Tem Duffield, Mayor Muldoon Volume 63 - Page 356 City of Newport Beach Study Session and Regular Meeting September 12, 2017 24. Non -Exclusive Commercial Solid Waste Franchises [42/100-20171 Mayor Muldoon opened the public hearing. Jim Mosher believed that the City should move forward with three year contracts and the agreement template should have been discussed tonight, questioned the resolution number, and noted that. the attachment to the ordinance is incorrect. Hearing no further testimony, Mayor Muldoon closed the public hearing. Municipal Operations Director Pisani confirmed for Council Member O'Neill that the franchisees agreed to be bound by new State law if changed. Council Member O'Neill indicated that the reason for changing to a longer contract term provides the franchisees more time to obtain financing to meet increased State safety regulations. Council Member Dixon received that the City does not requrq_ however, she requested that _stE program for these haulers too Erol City Clerk B Services LLC at the City would have 30 haulers. She noted ;es to use Clean Natural Gas (CNG) vehicles; the City Council with some type of incentive to CNG vehicles within the seven year period. t to Resolution No. 2017-60 to add California Waste Amended motion b Coufi6il Member Dixon seconded by Council Member Peotter. to a) adopt amended Rog :dIutiah: No. 2017-60, A Resolution of the City Council of the Citv of Newport. Beach, California, De lcxting Its Intention to Conduct, a Public Hearing to Consider Granting Non -Exclusive Solid Waste Franchises; b) direct staff to return to the City Council with an incentive program for small business haulers to voluntarily convert to CNG vehicles; and c) 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. The amended motion carried by the following roll call vote: Ayes: Council Member Herdman. Council Member Avery, Council Member Dixon, Council Member Peotter, Council Member O'Neill, Mayor Pro Tem Duffield, Mayor Muldoon 25. Conduct a Proposition 218 Public Hearing and Consider a Sewer Rate Adjustment [100-2017] Mayor Muldoon announced that this was the time and place for the public hearing on protests or objections to the proposed sewer rate adjustment., and that all written protests must be provided to the City Clerk prior to the closing of the public hearing. Mayor Muldoon opened the public hearing. Volume 63 - Page 357 City of Newport Beach Study Session and Regular Meeting September 12, 2017 Nancy Skinner emphasized the importance of the sewer rate adjustanent as it relates to the water quality of the Bay. Jim Mosher expressed support for the sewer rats adjustment, but questioned if it was an adequate adjustment. He suggested keeping the rate schedule in the Newport. Beach Municipal Code as it currently is now and adjusting it every five years. Hearing no further testimony, Mayor Muldoon closed the public hearing and 45 day notice period. Citv Clerk Brown announced that the City received 13 protests from property owners and one letter of support for the sewer rate adjustment. Council Member O'Neill discussed the public outreach and the difficulty involved with raising rates, commended Municipal Operations Director Murdoch, reported that the sewer fund has been operating in a deficit since 2010, and noted only propertiOs that utilize the City as its sewer operator will pay the new rate. Council Member Peotter agreed that the sewer fund should1gt be dependent on the General Fund, noted that the rate adjustment will only cgvex costs, commended Municipal Operations Director Murdoch, and took issue that the sewer rates ha e not changed since 2006. Council Member Avery discussed the City Council's rbsponsibilit.y to safety, health, and the environment, and emphasized the need f" he sealer rats adjustment. Council Member Dixon commended MunicipalOperations Director Murdoch, pointed out that. this is a user fee, and displayed pho-os of $ee system issues. Mayor Pro Tem Duffield noted that, even though the previous City Council was faced with the recession when sewer rats adjustments were first considered, they chose to build a new City Hall before updating the sewer system. He expressed support for the sewer rate adjustment and commended the Utilities Division and Municipal Operations Director Murdoch. The motion carried by the following roll call vote: Ayes: Council Member Herdman, Council Member Avery, Council Member Dixon, Council Member Peotter, Council Member O'Neill, Mayor Pro Tem Duffield Nays: Mayor Muldoon XIX. CURRENT BUSINESS 26. Purchase of Real Property Located at 2807 Newport Boulevard for Relocation of Fire Station No. 2 (C-8522-1) [381100-20171 Community Development Director Jurjis utilized a PowerPoint presentation to discuss the history of the current fire station (475 32nd Street.), challenges with the existing site, how the proposed site was considered (2807 Newport. Boulevard), the advantages of the proposed site, Volume 63 - Page 358 City of Newport Beach Study Session and Regular Meeting September 12, 2017 displayed conceptual plans, compared response times, discussed the proximity of other fire stations to residential areas, conducted a site comparison, reported on the estimated cost of moving versus staying, and highlighted reasons to purchase the new site. Council Member O'Neill received clarification from Community Development Director Jurjis that the Building Excise Tax Fund is used to pay for police and fire stations, and that the Facilities Financial Planning (FFP) Fund is a mix of General Fund money and developer fees. Dennis Halloran, member of his homeowners association's noise committee, expressed concerns with the proposed location due to noise and noted that the site has noise restrictions. He suggested keeping the fire station at its existing location and provided suggested uses for the proposed site. Gary Deperine expressed concerns about noise from a fire station being located across from his neighborhood and expressed support for the existing location since it is surrounded by businesses. George Schroeder believed that the residents City, not just their neighborhood. Jim Mosher discussed the economics of the sites were no longer being considered. (_'o.n process that led to the purchase price enc devalued the property. Mayor Muldoon commended staff for times or impact traffic; however, 60' in is in the best interest, of the sked rovhy the three other potential �ment Director Jurjis explained the restriction to prohibit food service the property as it will not change response vote will reflect the residents' wishes. Council Member Avery 1-ielieved that the proposed location will benefit residents and visitors, fire stations want to be a part of the community, and the proposed site offers better accessibility. He expressed support for purchasing the property. Council Member Dixon noted this is the beginning of a process that could take two years, thanked staff for proactively looking for a site, emphasized that public safety is the City Council's number one priority, and believed a fire station could improve existing nuisance problems in that area. She assured the residents that the City wants this to be a collaborative effort. Council Member Herdman noted he lives near the Balboa Island fire station and sirens are not an issue. Mayor Pro Tem Duffield expressed hope that the City applies sound technology to the building to minimize nuisances and stated his support for the purchase. Motion by Council Member Dixon seconded by Council Member Herdman, to a) find the execution of a purchase and sale agreement is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines; b) authorize the City Manager to execute a purchase and sale agreement, and related documents, Volume 63 - Page 359 City of Newport Beach Study Session and Regular Meeting September 12, 2017 based upon the major deal points outlined in this staff report to purchase the property located at 2307 Newport. Boulevard from MNG Newport Beach, LLC; and c) approve Budget Amendment No. 17BA-006 in the amount of $4,010,000, transferring money from the Building Excise Tax Fund, the Cultural and Arts Fund, and the Facilities Financial Planning Fund, to fund the acquisition of the property. The motion carried by the following roll call vote: Ayes: Council Member Herdman, Council Member Avery, Council Member Dixon, Council Member Peotter, Council Member O'Neill, Mayor Pro Tem Duffield Nays: Mayor Muldoon XX. MOTION FOR RECONSIDERATION - None li1Ly ViLeru Volume 63 - Page 360 Hall Electronic Bulletin L00 Civic Center Drive on ion