HomeMy WebLinkAbout03/08/2022 - Study Session / Regular MeetingCITY OF NEWPORT BEACH
City Council Meeting Minutes
Study Session and Regular Meeting
March 8, 2022
I. ROLL CALL - 4:00 p.m.
Present: Mayor Kevin Muldoon, Mayor Pro Tem Noah Blom, Council Member Brad Avery,
Council Member Joy Brenner, Council Member Diane Dixon, Council Member Duffy Duffield,
Council Member Will O'Neill
II. CURRENT BUSINESS
SS1. Clarification of Items on the Consent Calendar - None
SS2. Recognition of the Freeway Fighters
Council Member O'Neill introduced Bill Lobdell, host of Newport Beach in the Rearview Mirror
podcast, who recounted the Freeway Fighters battle against the development of a coastal
freeway through Newport Beach, and introduced Robert Curci who participated in the charge
resulting in a 1971 vote to ban the coastal freeway.
Robert Curci expressed his appreciation to the City Council for honoring the Freeway Fighters
and listed the participants involved in the effort.
Council Member Duffield noted past efforts to stop freeway construction, the history of this
charge, and the effects to the City if construction moved forward.
Council Member Brenner thanked the Freeway Fighters, recounted her childhood memories
related to the freeway fight, and indicated how inspirational the effort was.
Mayor Muldoon read the proclamation and presented it to Robert Curci and the Freeway
Fighters in attendance or their family members.
SS3. Capital Improvement Program (CIP) Early Look
Council Member Brenner announced she would be recusing herself during discussions
relative to the Grant Howald Park Rehabilitation Project and Storm Drain System
Project due to real property interest conflicts.
Mayor Pro Tem Blom announced he would be recusing himself during discussions
relative to the Balboa Island Water Main Replacement, the Balboa Island Drainage
System Project, and the Assessment District 111 Project due to real property interest
conflicts.
Mayor Muldoon announced he would be recusing himself during discussions relative
to the Grant Howald Park Rehabilitation Project, Fire Station No. 2 Project, Advanced
Metering Infrastructure, and any streetlight, traffic light, or Assessment District
projects due to potential business interest conflicts.
City Clerk Brown announced she would be recusing herself during discussions relative
to the Balboa Boulevard Crosswalk Improvement Project at 28th & 26th Streets due to
real property interest conflicts.
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Public Works Director Webb and Deputy Public Works Director Houlihan utilized a presentation
to discuss City Council goals for allocation of the Capital Improvement Program (CIP), the
project selection process, significant projects recently completed and currently under
construction, fiscal year 2021-2022 and preliminary fiscal year 2022-2023 tentative total CIP
budgets, and projects with new proposed funding.
In response to Council Member Dixon's questions, Public Works Director Webb and Deputy
Public Works Director Houlihan confirmed that community supporters can attend the California
Coastal Commission (CCC) meeting to discuss the Junior Lifeguard building project, clarified
the term "rebudgeting" as a carryover from the prior year budget, and further described the
Balboa Pier parking lot changes which will increase the number of parking spaces.
Deputy Public Works Director Houlihan continued the presentation to discuss facility projects
slated for new proposed funding. Public Works Director Webb clarified the alleys reconstruction
project and funding.
In response to Council Member Avery's question, Deputy Public Works Director Houlihan
clarified the purpose for the Collins Islands Bridge replacement and connection to the drainage
project.
Public Works Director Webb and Deputy Public Works Director Houlihan continued the
presentation to discuss streets and drainage projects, transportation projects, and water quality
and environmental projects.
In response to Council Member Brenner's questions, Deputy Public Works Director Houlihan
confirmed funding for the Big Canyon Phase 3 design and discussed the Newport Bay
Conservancy relationship, grant concerns, and additional funding sources.
Council Member Dixon shared the Federal Infrastructure Improvement Funds application
deadline, Public Works Director Webb discussed his awareness of federal funding opportunities,
and Council Member Brenner offered contact information to staff.
Deputy Public Works Director Houlihan continued with the presentation to discuss parks,
harbors, and beaches projects.
In response to Council Member Dixon's question, Deputy Public Works Director Houlihan
confirmed that ten public harbor piers are scheduled for rehabilitation.
Deputy Public Works Director Houlihan continued the presentation to discuss water,
wastewater, and miscellaneous projects.
In response to Council Member Brenner's question, Public Works Director Webb and Deputy
Public Works Director Houlihan clarified the waterline upgrade and replacement project
occurring on Pacific Coast Highway (PCH) between Bayside Drive and Jamboree Road, funding
sources, and processes for unexpected work. He noted delays due to traffic created from current
roadwork.
Deputy Public Works Director Houlihan continued the presentation to review the proposed fiscal
year 2022-2023 summary of new funding by type.
Council Member Dixon suggested a breakdown of external fund sources be provided in the
future, acknowledged surplus funds, and questioned if current staffing is sufficient to handle all
the projects. Public Works Director Webb reported on the efficient use of staff and consultants,
work and funding already underway, the five-year CIP plan, and project expansions.
Mayor Pro Tem Blom thanked staff for their work, addressed staffing challenges and project
evolution cycles, found the goals and plans to move the City forward impressive. and
acknowledged notable differences while driving on City streets compared to other cities.
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Public Works Director Webb and Deputy Public Works Director Houlihan continued the
presentation to review the five-year look ahead and significant projects.
In response to Council Member Brenner's questions, Public Works Director Webb reported
funding as undetermined for new Balboa Island benches, noted a preventative maintenance
approach, and related expenses connected to slurrying versus repaving streets.
Jim Mosher shared that virtual access is available for the upcoming CCC meeting
(www.coastalca.gov) and reported an out-of-date link to the Facilities Financing Plan (FFP) on
the City's Finance Department webpage.
Laura Curran noted opportunities for public review of the CIP and shared landscaping safety
hazards on Newport Boulevard.
III. PUBLIC COMMENTS ON AGENDA AND NON -AGENDA ITEMS
Laura Curran discussed her attendance at a Board of Supervisors hearing to discuss fentanyl
distribution in Orange County, statistics, dosing, effects on Newport Beach Police Department (NBPD)
officers, opportunities to learn about the deadly drug and related issues, distribution channels, issues
with residential facilities for drug treatment, regulation enforcement, and sober living home treatment,
partnerships, and responsible operators. She further noted the consequences for nonassertive
discussions with legislators and thanked the Board of Supervisors for hosting the hearing.
City Attorney Harp announced that the City Council would adjourn to Closed Session to
discuss the item listed in the Closed Session agenda, read the titles, and indicated he and City
Clerk Brown would be recusing themselves on Item IV.B due to personal financial interests.
IV. CLOSED SESSION
A. CONFERENCE WITH LABOR NEGOTIATORS
(Government Code § 54957.6): 1 matter
Agency Designated Representatives: Grace K. Leung, City Manager, Barbara Salvini, Human
Resources Director, and Charles Sakai, Esq., Negotiators.
Employee Organizations: Newport Beach Police Management Association (NBPMA) and Newport
Beach Lifeguard Management Association (NBLMA).
B. CONFERENCE WITH LABOR NEGOTIATORS
(Government Code § 54957.6): 1 matter
Agency Designated Representatives: Kevin Muldoon, Mayor, and Noah Blom, Mayor Pro Tem.
Unrepresented Employee: Leilani I. Brown, City Clerk, and Aaron C. Harp, City Attorney.
V. RECESSED — 5:07 p.m.
VI. RECONVENED AT 5:30 P.M. FOR REGULAR MEETING
VII. ROLL CALL
Present: Mayor Kevin Muldoon, Mayor Pro Tem Noah Blom, Council Member Brad Avery,
Council Member Joy Brenner, Council Member Diane Dixon, Council Member Duffv Duffield.
Council Member Will O'Neill
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VIII. CLOSED SESSION REPORT - None
IX. INVOCATION - Reverend Susan B. Pinkerton, St. Michael & All Angels Episcopal Church
X. PLEDGE OF ALLEGIANCE - Mayor Pro Tem Blom
XI. PUBLIC HEARING
1. Ordinance No. 2022-7: City Council Redistricting Map (PA2021-035)
Community Development Director Jurjis utilized a presentation to discuss the proposed City
Council district map, Census Block 1023, and the redefined boundary line for Districts 5 and 6.
Mayor Muldoon opened the public hearing.
Jim Mosher questioned public attendance at the Ad Hoc Redistricting Committee meeting and
guidance provided to staff by the committee, highlighted areas of inconsistency with the proposed
ordinance, and suggested refinements.
Hearing no further testimony, Mayor Muldoon closed the public hearing.
In response to Mayor Muldoon's question, Systems and Administration Manager Campagnolo
confirmed that no objections have been received from the public on the proposed map and noted the
map includes constitutional considerations. City Attorney Harp confirmed that it was his opinion
that the map is in compliance with Federal and local districting laws. Systems and Administration
Manager Campagnolo explained the use of a land address for liveaboards to determine districting
pursuant to the California Elections Code and Census.
Motion by Council Member O'Neill, seconded by Council Member Dixon, to a) determine
this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections
15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical
change to the environment, directly or indirectly; and b) waive full reading, direct the City Clerk to
read by title only, introduce Ordinance No. 2022-7, An Ordinance of the City Council of the City of
Newport Beach, California, Changing and Redefining the City Council District Boundaries as a
Result of the United States Census Bureau's 2020 Census, and pass to second reading on March 22,
2022.
In response to Council Member Brenner's question, Systems and Administration Manager
Campagnolo clarified that a real property address is used to determine district boundaries when
district lines are submerged, and no population or housing are attached to the census block.
The motion carried unanimously.
XII. NOTICE TO THE PUBLIC
XIII. CITY COUNCIL ANNOUNCEMENTS AND ORAL REPORTS FROM CITY COUNCIL ON
COMMITTEE ACTIVITIES
Council Member O'Neill:
• Applauded contributors of the 2022 Hoag Classic golf event
• Attended the Newport Beach City Track Meet and memorial service for Huntington Beach Police
Department (HBPD) Officer Nicholas Vella
• Announced the City Finance Committee meeting on March 10, 2022 at 3:00 p.m.
Council Member Duffield:
• Attended the Water Quality/Coastal Tidelands Committee meeting
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Council Member Dixon:
• Attended the Aviation Committee meeting to review work from 2021 and set a 2022 Action Plan,
the Southern California Association of Governments (SLAG) meeting which focused on housing, a
Joint Town Hall Meeting with Council Member Brenner, the Associated California Cities of Orange
County (ACC -OC) Legislative Session with the Governor's staff, and the memorial service for HBPD
Officer Vella
• Requested a future agenda item to review Newport Beach Municipal Code 5.46 related to film
permits
Council Member Brenner:
• Attended the memorial service for HBPD Officer Vella, the Joint Town Hall Meeting and suggested
combining district meetings in the future for greater efficiency of staff time, and the ACC -OC
Legislative Session to discuss the Housing Element, Accessory Dwelling Units (ADUs), and group
homes
• Encouraged enrollment in the Citizens Police Academy Program
Council Member Avery:
• Attended the Orange County Sanitation District (OCSD) Board Meeting and the memorial service
for HBPD Officer Vella
Mayor Pro Tem Blom:
• Attended the memorial service for HBPD Officer Vella and the Hoag Classic
Mayor Muldoon:
• Attended the Hoag Classic Awards Ceremony and the memorial service for HBPD Officer Vella
• Utilized a presentation to announce a paper shredding, e -waste disposal, and compost giveaway on
April 9, 2022, from 8:00 a.m. to noon at the Newport Beach Corporation Yard
XIV. MATTERS WHICH COUNCIL MEMBERS HAVE ASKED TO BE PLACED ON A FUTURE
AGENDA
Consider a discussion regarding the transferability of Short -Term Lodging permits
[Brenner]
Mayor Pro Tem Blom, Council Member Brenner, Council Member Avery, and Council Member
Dixon concurred to bring the item back at a future meeting.
• Consider supporting the City of Huntington Beach creating a memorial for HBPD Officer
Nicholas Vella in Newport Beach [Muldoon]
The City Council unanimously concurred to support the City of Huntington Beach.
XV. PUBLIC COMMENTS ON CONSENT CALENDAR — None
XVI. CONSENT CALENDAR
READING OF MINUTES AND ORDINANCES
2. Minutes for the February 22, 2022 City Council Meeting [100-20221
Waive reading of subject minutes, approve as.amended, and order filed.
3. Reading of Ordinances
Waive reading in full of all ordinances under consideration and direct the City Clerk to read by title
only.
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ORDINANCES FOR ADOPTION
4. Ordinance Nos. 2022-5 and 2022-6: Amending Title 20 and Title 21 of the Newport Beach
Municipal Code Related to Accessory Dwelling Units (PA2019-248) [100-2022]
a) Find this project statutorily exempt from the California Environmental Quality Act (CEQA)
pursuant to Section 21080.17 of the Public Resource Code and Section 15282(h) of the CEQA
Guidelines, which states that the adoption of an ordinance regarding second units to implement
the provisions of Sections 65852.1 and 65852.2 of the Government Code are exempt from the
requirements of CEQA;
b) Conduct second reading and adopt Ordinance No. 2022-5, An Ordinance of the City Council of
the City of Newport Beach, California, Adopting Revisions to Zoning Code Amendment
No. CA2019-009 Amending Title 20 (Planning and Zoning) of the City of Newport Beach
Municipal Code Related to Accessory Dwelling Units and Junior Accessory Dwelling Units for
Consistency with the California Coastal Commission's Modifications and State Law (PA2019-
248); and
c) Conduct second reading and adopt Ordinance No. 2022-6, An Ordinance of the City Council of
the City of Newport Beach, California, Accepting the California Coastal Commission's Suggested
Modifications and Adopting Local Coastal Program Amendment No. LC2019-008 to Amend
Title 21 (Local Coastal Program Implementation Plan) of the City of Newport Beach Municipal
Code Related to Accessory Dwelling Units (PA2019-248).
Council Member Brenner recused herself on Item 4 due to real property interest conflicts.
RESOLUTIONS FOR ADOPTION
5. Resolution No. 2022-17: Adopting a Memorandum of Understanding with the Part Time
Employees Association of Newport Beach (PTEANB) (C-3362) and Associated Salary
Schedule [38/100-2022]
a) Determine this action is exempt from the California Environmental Quality Act (CEQA)
pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action
will not result in a physical change to the environment, directly or indirectly;
b) Adopt Resolution No. 2022-17, A Resolution of the City Council of the City of Newport Beach,
California, Adopting a Memorandum of Understanding Between the City of Newport Beach and
the Part Time Employees Association of Newport Beach and Associated Salary Schedule; and
c) Approve Budget Amendment No. 22-045 appropriating $57,636 from unappropriated fund
balances to various salary and benefit accounts to implement the terms of the MOU for the
second half of FY 2021-22, representing the first six months of the four-year period covered by
the MOU.
Resolution No. 2022-18: Reestablishing the City Council Homeless Ad Hoc Committee
[241100-2022]
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) Adopt Resolution No. 2022-18, A Resolution of the City Council of the City of Newport Beach,
California, Reestablishing the Newport Beach City Council Homeless Ad Hoc Committee.
CONTRACTS AND AGREEMENTS
7. Balboa Boulevard and Newport Boulevard Pavement Rehabilitation (Project No. 22R11)
— Approval of Professional Services Agreement with Psomas (Contract No. 8833-1)
[381100-2022]
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;
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b) Approve a Professional Services Agreement with Psomas of Santa Ana, California, for the
Balboa Boulevard and Newport Boulevard Pavement Rehabilitation project at a total not -to -
exceed price of $528,566, and authorize the Mayor and City Clerk to execute the Agreement;
and
c) Approve Budget Amendment No. 22-046 appropriating $378,566 from Neighborhood
Enhancement Fund unappropriated fund balance to Account No. 53601-980000-22R11.
8. Amendment No. 1 to On -Call Professional Services Agreement with Perry's Truck and
Equipment Repair, LLC for Vessel Removal, Storage and Disposal Services (C-7703-2)
[38/100-2022]
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 Amendment No. One to the On -Call Professional Services Agreement with Perry's
Truck and Equipment Repair, LLC for vessel removal, storage and disposal services at a not -to -
exceed amount of $295,000 and authorize the Mayor and City Clerk to execute the agreement.
9. Pulled from the Consent Calendar
MISCELLANEOUS
10. Budget Amendment to Accept a Check from the Newport Beach Public Library
Foundation and Appropriate Funds to the Library's Fiscal Year 2021-22 Budget [100-
2022]
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) Accept a check in the amount of $25,000 from the Newport Beach Public Library Foundation
and approve Budget Amendment No. 22-043 to increase expenditures by the same amount in
Division 0106051 (Library Foundation).
Motion by Mayor Pro Tem Blom, seconded by Council Member Brenner, to approve the Consent
Calendar, except for the item removed (Item 9); and noting the recusal by Council Member Brenner to
Item 4 and the amendments to Item 1.
The motion carried unanimously.
XVII. ITEM REMOVED FROM THE CONSENT CALENDAR
9. Amendment No. One to Revocable License Agreement with PCHS Facilities, LLC, for Use
of City -Owned Property at 1499 Monrovia Avenue (C-5889) [38/100-2022]
Community Development Director Jurjis and Real Property Administrator Whitlinger utilized a
presentation to display a vicinity map and explained the history of the subject property and proposed
license agreement terms.
In response to Council Member Dixon's questions, Community Development Director Jurjis clarified
the parcel owned by the City and sold to Kobe Bryant, the Master Plan of Streets and Highways for
road access amendments, Pacifica Christian High School's (PCHS) purchase intentions, Surplus
Lands Act for development, and PCHS' parking requirements.
In response to Council Member Brenner's inquiries, Real Property Administrator Whitlinger
utilized a slide to discuss $1 per year or no fee agreement properties, and Community Development
Director Jurjis referenced City Council Policy F-7 pertaining to fair market value, procedures for
waiving Council policies, and State Lands Commission rules.
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Council Member O'Neill emphasized that Council will not be waiving City Council Policy F-7 since
findings were made, utilized the 1499 Monrovia Avenue map to address the regional process for
revisions to the Master Plan of Streets and Highways, clarified the lease agreement and access road
use, elaborated on the unique space with no conversion option, and indicated how it is not
comparable to any other location in the City. He further elaborated on alternative uses of the space,
current neighboring tenant uses and structural investments, and benefits to the City for continued
use which led him to support a productive use for the space.
Mayor Pro Tem Blom shared his perspective on identifying productive uses of City properties that
benefit the community, school district space use and function, and observations during a recent
PCHS visit, and acknowledged the financial investment by PCHS and partnership in long-term
goals.
Council Member Brenner expressed the importance of being equitable and following a consistent
policy.
Council Member Avery summarized traffic patterns at PCHS, questioned lease agreement terms,
noted City services to the parcel, suggested alternative property uses, and expressed support for
PCHS, but rent should be identified by a study.
In response to Mayor Muldoon's questions, City Attorney Harp discussed the revocable license
agreement, the 90 -day termination notice, and City Council's purview to make findings and
determine market value. Mayor Muldoon highlighted the slide that listed the organizations with
$1 per year or no fee agreements and Community Development Director Jurjis disclosed PCHS'
agreement to pay $1 per year.
Luis Garcia, PCHS Director of Business and Operations, summarized PCHS' educational dedication
to the community, its nonprofit status, mission and goals, fundraising, tuition, scholarship process,
donor assistance, funding goals, financial assistance, and opportunities to grow value in the
community, and requested an extension of the existing agreement with the opportunity for future
amendments.
Nancy Scarborough noted that there was a business on the $1 per year or no fee agreement list,
discussed PCHS' asset and tuition, and suggested that a fair market price or equitable arrangement
be considered.
Charles Klobe recommended reviewing the current organizations with $1 per year or no fee
agreements, expressed opposition to extending the no fee agreement, requested the City Council
reject the proposal, and supported assessing a property rental fee and keeping road access to
Banning Ranch.
Jim Mosher noted public school availability, requested a list of organizations with fee agreements,
and questioned having a no fee agreement with PCHS.
David Bahnsen explained PCHS' fundraising goals and scholarship opportunities and requested
continued use of the no fee agreement originated with Kobe, Inc., recalled the fair market value
process on the 15th Street PCHS property lease, reported approximately $2 million paid by PCHS in
the form of City rent, noted PCHS' nonprofit status, donor dependency, monetary property
investments, and operational needs, and questioned fair market value determinations.
Mayor Muldoon discussed license agreement revocation and PCHS' campus safety by continuing the
no fee agreement, and suggested continuing the license arrangement.
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Motion by Mayor Muldoon, seconded by Council Member O'Neill, to a) determine this action
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 Section 15060(c)(3) (the activity is not a project as defined in Section 15378) of
the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because this action will
not result in a physical change to the environment, directly or indirectly; b) approve a waiver of City
Council Policy F-7 — Income Property based on the findings contained in this staff report, that
conducting an open bid process or changing the licensee would result in excessive vacancy and costs,
and the use of the property provides a unique service to the community and might not otherwise be
provided where an open bid or fair market value of the property be required; and c) authorize the
City Manager and City Clerk to execute Amendment No. One to Revocable License Agreement
Between the City of Newport Beach and PCHS Facilities, LLC, Assignee of Kobe Studios, LLC, for
the Use of City Property.
Council Member O'Neill defended the community value related to the organizations with a $1 per
year or no fee agreement but agreed that continued evaluation should occur, and pointed out the
unique nature of this property.
Mayor Pro Tem Blom acknowledged Fletcher Jones' impact on the City, envisioned a community
that cultivates growth and provides value and betterment, and commended the investment in the
City from organizations with a $1 per year or no fee agreement.
In response to Council Member Dixon's questions, Real Property Administrator Whitlinger
confirmed shared use of the gymnasium for sports activities with public attendance. Council
Member Dixon noted City Council Policy F-7 stipulations and expressed her support for the
amendment.
In response to Council Member Brenner's questions, Real Property Administrator Whitlinger
clarified the discounted continued use of the gym by PCHS, Community Development Director Jurjis
indicated an amended agreement for the Community Center was already approved by Council and
reviewable in two years upon the agreement termination, City Attorney Harp stated the benefits of
separate agreements to maintain revocable options and ensure City access to the property, and City
Manager Leung emphasized that the Council policy and findings support concerns for equitable
discounting for organizations that provide benefits to the public.
In response to Council Member Avery's inquiry, Community Development Director Jurjis confirmed
that PCHS negotiated with the City for the 1499 Monrovia Avenue property after purchasing it from
Kobe Bryant and received a no fee license agreement with a potential recall by the City to
accommodate Banning Ranch. Council Member Avery supported the amendment and continuing
fair and equitable rent on City owned parcels.
In response to Mayor Muldoon's question, Community Development Director Jurjis confirmed that
the Fletcher Jones use is for a right-of-way. Mayor Muldoon concurred with Council Member Avery,
supported nonprofit entities, compared the property to Fletcher Jones' since it is a potential roadway
opportunity, and agreed with having more stringent guidelines and Council's purview to decide the
worthiness of $1 per year or no fee agreements based on public benefit.
Council Member Dixon clarified that the amendment before Council is a renewal of an original lease.
The motion carried unanimously.
XVIII. PUBLIC COMMENTS ON NON -AGENDA ITEMS
Nancy Scarborough announced that the 2022 election of the California Tri -Partisan Land Use Initiative
is moving to the 2024 election, discussed the subsequent effects of SB 9 and SB 10, and pointed out that
there were 48 new Senate bills related to housing and ADU height increases.
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XIX. CURRENT BUSINESS
11. Ordinance No. 2022-8: An Amendment Authorizing Staff to Extend the Time to Complete
Construction for One -Unit and Two -Unit Family Dwellings [100-20221
Community Development Director Jurjis and Acting Building Official Thai utilized a presentation
to review the background of Ordinance No. 2019-8, the ordinance's workflow process, how COVID-
19 disrupted the construction industry, the number of current residential construction projects in
the City, a proposed workflow and additional one-year extension time, and dormant projects.
In response to Council Member Dixon's questions, Community Development Director Jurjis affirmed
enforcement of 5+ year permits and noted that all permits received a three-year fresh start but are
due soon. Council Member Dixon supported the amendment and suggested the amendment sunset
in two years and return to the original ordinance once supply chain issues conclude.
Motion by Council Member Dixon, seconded by Council Member Duffield, to a) find this
action 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, California Code of Regulations, Title 14, Chapter 3, because it has no potential
for resulting in physical change to the environment, directly or indirectly; and b) waive full reading,
direct the City Clerk to read by title only, introduce amended Ordinance No. 2022-8, An Ordinance
of the City Council of the City of Newport Beach, California, Amending Section 15.02.095 of the
Newport Beach Municipal Code Authorizing an Extension of the Time Limit to Complete
Construction for an Additional Year, including a two-year sunset period, and pass to second reading
on March 22, 2022.
Council Member Avery noted the struggles related to the construction process and expressed
concern related to disruptions in the community from 7+ year outstanding permits.
Mayor Pro Tem Blom indicated that no one knows when supply chain issues, labor shortages, and
construction challenges will end, and supported the proposed workflow but opposed an automatic
sunset.
Council Member Dixon pointed out disturbances and impacts created by construction projects, the
urgency for project completion, future policy review by the City Council, hardship cases that will be
considered by the City, building industry needs, and worldwide supply chain issues. She amended
the motion to include a three-year sunset period.
Amended motion by Council Member Dixon, seconded by Council Member Duffield, to
a) find this action 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, California Code of Regulations, Title 14, Chapter 3, because
it has no potential for resulting in physical change to the environment, directly or indirectly; and
b) waive full reading, direct the City Clerk to read by title only, introduce amended Ordinance No.
2022-8, An Ordinance of the City Council of the City of Newport Beach, California, Amending Section
15.02.095 of the Newport Beach Municipal Code Authorizing an Extension of the Time Limit to
Complete Construction for an Additional Year, including a three-year sunset period, and pass to
second reading on March 22, 2022.
In response to Council Member Brenner's questions, Community Development Director Jurjis
reported that there are 3,200 active building permits in the City and noted unknown supply lines,
energy cost increases, prediction challenges, and a fail-safe ordinance. He further indicated that the
proposal seems to work, future consideration will be presented to the City Council to authorize an
extension of the time limits if needed, and permit holders have received communications from staff
related to project time limits.
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Jim Mosher supported the three-year sunset clause and related ordinance adoption requirements.
Brion Jeannette discussed project delays and backlogs, and supported a three-year sunset clause.
Mayor Pro Tem Blom questioned the reason for rewriting the ordinance, extended trust in staffs
decision-making, noted construction challenges, cautioned creating layers of bureaucracy, clarified
the function of the amendment and bypassing the fee and extension process, concurred with
community disruptions, explained property value and transfer fee increases, timing, and climate
impacts, and opposed including a sunset clause.
Council Member Brenner indicated the original ordinance was intended to encourage project
progression and completion, and noted property owners, contractors, and architects who are anxious
to complete projects, property value decrease with continued neighboring construction, and a
compromise provided by the amendment.
With Mayor Muldoon and Mayor Pro Tem Blom voting "no," the motion carried 5-2.
XX. MOTION FOR RECONSIDERATION — None
XXI. ADJOURNMENT — Adjourned at 7:32 p.m. in memory of Carol Fracalosy
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
March 3, 2022, at 4:00 p.m. .-.-?
Leilani I. Brown
City Clerk
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Volume 65 - Page 274