Laguna Beach City Council Minutes July 11, 2023
MINUTES
LAGUNA BEACH CITY COUNCIL
HYBRID VIRTUAL/IN-PERSON REGULAR MEETING
July 11, 2023
A Regular Hybrid Virtual/In-Person Meeting of the City Council of the City of Laguna Beach was called to order on Tuesday, July 11, 2023, in the City Hall, 505 Forest Avenue, Laguna Beach, California, Mayor Whalen presiding.
ROLL CALL
PRESENT: COUNCILMEMBERS: Orgill, Rounaghi, Weiss, Kempf, Whalen PARTICIPATING REMOTELY: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: None
Councilmember Alex Rounaghi led the Pledge of Allegiance.
CLOSED SESSION
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Public Employment (pursuant to Government Code section 54957(b)) - City Attorney. Discussion regarding anticipated retirement of City Attorney and selection process for appointment of new City Attorney.
Confer with Real Property Negotiator (pursuant to Government Code section 54956.8) - one item:
proposed rates and terms of payment for possible lease of 31532 and 31526 Coast Highway; property owner is The Blevins Family Trust, dated March 7, 2011; City negotiator is Shoreh Dupuis, City Manager.
Confer with Legal Counsel Regarding Existing Litigation (pursuant to Government Code section 54956.9(d)(1)) - one item: workers' compensation claim for Leal [Claim No. 21-155836].
Confer with Legal Counsel Regarding Anticipated Litigation (pursuant to Government Code section 54956.9(d)(2))) - one item: claim by Councilmember Weiss of alleged Brown Act violation relating to closed sessions and proposed authorization for City Attorney to disclose confidential closed session communications to District Attorney to correct misinformation in claim.
City Attorney Phil Kohn reported that for the first three Closed Session items, all Councilmembers were present and participated in the discussions. There was no reportable action taken on the first aid pari paced in time discussi
two items, dealing with Public Employment and Real Property Negotiations. On the third item, dealing with Existing Litigation, the City Council voted unanimously to provide settlement authority. On the fourth item, dealing with Anticipated Litigation, Kohn reported that Councilmembers George Weiss and Mark Orgill recused themselves, and the remaining three Councilmembers voted unanimously to authorize the City Attorney to respond to the District Attorney regarding the letter from Councilmember George Weiss concerning alleged Brown Act violations in connection with closed sessions that occurred on June 13 and June 20, 2023, regarding anticipated litigation, and further authorize the City Attorney to disclose to the District Attorney confidential information discussed at those closed sessions. -1-
Laguna Beach City Council Minutes July 11, 2023
EXTRAORDINARY BUSINESS
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YEARS OF SERVICE RECOGNITION
Received and filed the report recognizing the following City employees with milestone years of service: Amber Dobson, David Cole, Luke Trif, Devynn Brennan, Owen Fisher, Joe Godoy, Olivia Johnson, Kyle Nelson, Aaron Payne, Timothy Sanchez, Scott Saunders, Nolan Schatzle, William Senecal, Ryan Silver, Logan Strook, Travis Wilson, Katie Crevda.
Cassandra Dove, Alex George, Thomas Heib, Nicole Rice, and Crystal Ogunedojutimi for one year, and Brent Buccola and Matthew Rolfe for 10 years.
PUBLIC COMMUNICATION
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Todd Miller, Rancho La Bolsa Dive Club, proposed a public landmark to educate the public about the importance of the Marine Protected Area (MPA). Mike Roy, Nancy Caruso, Rich German, Lexi and Addi Moran, Arielle Tavey, and Ray Melva spoke in support of the proposal.
Ganka Brown commented on Eucalyptus trees and on this Council's achievements.
Fred Smoller, Orange County Sustainability Decathlon, explained the event and requested support from the City.
Johanna Ellis reiterated her request that the Council formally recognize the Temple Hills special setbacks set in a 1947 district map missing from the City's files.
Deborah and Terry Klein and Darlene Cedeno reiterated their concerns regarding the construction of a structure on a neighboring property on Mermaid Street.
Steve Brown, Sensible Laguna, reported on the Laguna Beach Unified School District's June 27 special meeting on its Master Facilities Plan.
Chris Catsimanes reiterated his disapproval of the City's handling of the May 2 events related to the civil dispute over the operation and management of Hotel Laguna and 14 West.
Meg Monahan expressed concerns regarding the status of Providence Mission Hospital Laguna Beach.
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Laguna Beach City Council Minutes July 11, 2023
COUNCIL AND STAFF REPORTS
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City Clerk Ann Marie McKay noted that revised June 27 minutes were posted on Friday, correcting the vote on the road extension item to show Mayor Pro Tem Sue Kempf recused, and correcting public comments on the claims item.
City Manager Shoreh Dupuis thanked City staff for a successful 4" of July, and provided statistics for that day. Dupuis also advised that City staff received CEQA (California Environmental Quality Act) training last month, and there will be a joint Planning Commission/Design Review Board meeting on August 2 at 3:00 p.m. for CEQA training, which will be open for anyone to attend.
Community Development Director Marc Wiener updated the Council on the issue regarding the Temple Hills special setback, advising that since the maps cannot be located, those setbacks are currently only noted in the City's GIS (Geographical Information System), not in any legal document such as an ordinance or resolution; therefore, staff is currently referencing the Zoning Code for projects in that area. Mayor Bob Whalen stated that since it is clear the missing maps will not be located, staff should proceed with the necessary process to formalize the special setbacks.
Regarding the shed on Mermaid, Community Development Director Marc Wiener explained that the applicant originally submitted an application to change the shed to a studio, but withdrew that application and instead remodeled the shed, maintaining its original use. Wiener explained that three structural walls remained in place, allowing the structure to remain. Wiener also noted that the remodeled structure is more fire resistant, and that there is a zero-foot setback in the Downtown Specific Plan area. Mayor Bob Whalen requested that staff provide a written response to the concerned neighbors.
City Manager Shoreh Dupuis advised that she met with Superintendent Jason Viloria regarding the Laguna Beach Unified School District pool, and updated him on the City's efforts on a facilities master plan, which includes investigating options for a pool.
Councilmember George Weiss thanked City staff for a successful July 4** and for getting the City clean the next day. Regarding the shed, he opined that it now looks like a structure.
Councilmember Weiss congratulated the dive club on their proposed initiative, and he stated that he is in favor of looking for a pool site. Councilmember Weiss stated that the Food Pantry was unaware of the Pacific Marine Mammal Center's proposed temporary use and expressed concerns about the impact to the Food Pantry's operations. Councilmember Weiss also commented on the passing of Martha Lydick, who had dedicated her life to the library and community.
Councilmember Mark Orgill provided an update on the skimboarding issue, stating that it appears the details have been worked out. He also praised this year's Pageant of the Masters.
Mayor Pro Tem Sue Kempf agreed with Councilmember Mark Orgill about this year's Pageant, and she noted that the dive club's proposal is still in concept, but worthy of pursuing. Mayor Pro Tem Kempf also reiterated that the lawn bowling challenge is still on, so they need to put together a team.
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Mayor Bob Whalen reported on the Sawdust Art Festival and Festival of Arts openings, and he conveyed the glowing reports he received from Three Arch Bay and South Laguna surfers on the City's successful launch of providing lifeguard services. Mayor Whalen also advised that he received an estuary update from Ed Alonzo, who will be providing an update to the Council.
CONSENT CALENDAR
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Moved by Mayor Pro Tem Sue Kempf, seconded by Councilmember George Weiss, and carried unanimously 5/0 to approve items 1-3, 5-7, and 9-10.
2. MINUTES OF THE CITY COUNCIL MEETING
Approved the Minutes of the Regular Meeting of the City Council of June 27, 2023.
WARRANT LISTING
Warrants: $2,586,590.74 06/23/2023
Payroll #26 $1,948,623.81 06/30/2023
Total $4.535.214.55
Approved the general warrants and payroll disbursements.
CITY TREASURER'S MONTHLY INVESTMENT REPORT FOR MAY 2023 City Treasurer Laura Parisi pulled this item to discuss the city's investment portfolio with the City Council and she confirmed with the City Council that any changes to the investment portfolio would require input from the investment committee.
Moved by Mayor Pro Tem Sue Kempf, seconded by Councilmember Alex Rounaghi, and carried unanimously 5/0 to receive and file the Monthly Investment Report for May 2023.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAGUNA BEACH TO
CONFIRM WEED ABATEMENT ASSESSMENT ROLL
(1) Adopted Resolution #23.041 titled, "A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF LAGUNA BEACH, CALIFORNIA, CONFIRMING ASSESSMENTS FOR WEED ABATEMENT," which will direct the Fire Chief to file a copy of the 2023 report with the County Auditor on or before August 10, 2023; and (2) Adopted Resolution #23.042 titled, "A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF LAGUNA BEACH, CALIFORNIA, CONFIRMING ASSESSMENTS FOR WEED ABATEMENT," with Councilmember Rounaghi to abstain. -4-
Laguna Beach City Council Minutes July 11, 2023
6. TIER 3 SEISMIC ASSESSMENT OF CITY HALL AND FIRE STATIONS #2 AND #3 Awarded and authorized the City Manager to execute contract #23-129 with IDS Group, in the amount of $780,688, to perform an American Society of Civil Engineers Standard 41 Tier 3 seismic evaluation and retrofit design for the City Hall and Fire Station No. 2 and 3 buildings.
ACCEPTANCE OF BURKART ESTATE DONATION
(1) Accepted the donation from the Edward Burkart estate in the amount of $29,751.46; (2) Appropriated the $29,751.46 to be used for animal-related matters at the Animal Shelter, which include facility maintenance, animal care, and educational outreach with a matching increase in estimated Animal Shelter Estate Donations; and (3) Authorized the Mayor to send a thank you letter to the estate.
8. AWARD OF TOW SERVICE AGREEMENTS AND FEE ADJUSTMENTS
Public Testimony: Chris Catismanes asked if the city generated any revenue from these towing services.
Captain Michael Peters responded to Catismanes' question, stating that there was no net cost or gain to the city for towing services and he explained.
Councilmember George Weiss asked about the fees and a discussion ensued.
Moved by Councilmember Alex Rounaghi, seconded by Mayor Pro Tem Sue Kempf, and carried unanimously 5/0 to:
(1) Authorize the City Manager to execute agreements #23-130 and #23-131 with two contracted city towing service companies, To and Mo Towing and Laguna Towing; and (2) Adopt Resolution #23.043 titled, "A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF LAGUNA BEACH, CALIFORNIA, ESTABLISHING TOWING
CHARGES AND STORAGE RATES FOR OFFICIAL POLICE TOW SERVICES AND RESCINDING RESOLUTION NO. 15.083."
APPROVAL OF 46TH ANNUAL VICTORIA SKIMBOARD CHAMPIONSHIPS AT
ALISO BEACH
(1) Approved the Annual Skimboard Championships at Aliso Beach, scheduled for August 26-27,2023; and
(2) Waived $270 in parking fees associated with using three parking spaces during the event and $2,880 costs related to additional Marine Safety staff needed for the event. -5-
Laguna Beach City Council Minutes July 11, 2023
10. ADOPTION OF ORDINANCE AMENDING LAGUNA BEACH MUNICIPAL CODE SECTION 25.05.040 (DESIGN REVIEW) AND CHAPTER 25.07 (COASTAL
DEVELOPMENT PERMITS) AS MODIFIED AND APPROVED BY THE
CALIFORNIA COASTAL COMMISSION ON FEBRUARY 9, 2023
(1) Adopted Ordinance #1688 titled, "AN ORDINANCE OF THE CITY OF LAGUNA
BEACH, CALIFORNIA, AMENDING LAGUNA BEACH MUNICIPAL CODE SECTION 25.05.040 (DESIGN REVIEW) AND CHAPTER 25.07 (COASTAL
DEVELOPMENT PERMITS) AS MODIFIED AND APPROVED BY THE
CALIFORNIA COASTAL COMMISSION ON FEBRUARY 9, 2023, AND A
FINDING OF EXEMPTION FROM CALIFORNIA ENVIRONMENTAL QUALITY ACT"; and
(2) Adopted Resolution #23.044 titled, "A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF LAGUNA BEACH, CALIFORNIA, ACKNOWLEDGING RECEIPT OF THE CALIFORNIA COASTAL COMMISSION'S CERTIFICATION;
ACCEPTING AND AGREEING TO THE SUGGESTED MODIFICATIONS;
ADOPTING LOCAL COASTAL PROGRAM AMENDMENT 21-8778 TO AMEND LAGUNA BEACH MUNICIPAL CODE SECTION 25.05.040 (DESIGN REVIEW) AND CHAPTER 25.07 (COASTAL DEVELOPMENT PERMITS) AS MODIFIED
AND APPROVED BY THE CALIFORNIA COASTAL COMMISSION ON
FEBRUARY 9, 2023, AND EXEMPTION FROM CALIFORNIA
ENVIRONMENTAL QUALITY ACT, AND REQUESTING ITS CERTIFICATION
BY THE CALIFORNIA COASTAL COMMISSION, AND AGREEING TO
IMPLEMENT THE LOCAL COASTAL PLAN IN A MANNER FULLY
CONSISTENT WITH THE CALIFORNIA COASTAL ACT."
11. BUDGET POLICY RESOLUTION FOR FISCAL YEAR 2023-24 AFFIRMING
ANNUAL TRANSFER TO HOUSING FUND, DISASTER CONTINGENCY FUND RESTRICTIONS, MID-YEAR • TRANSFER TO OPEN SPACE FUND, AND A
COMMITMENT TO CONTRIBUTE TOWARD THE POTENTIAL PURCHASE OF
SOUTH LAGUNA GARDEN PARK
Councilmember George Weiss pulled this item to voice concerns about the loss of affordable housing in Laguna Beach and he suggested the creation of a permanent fund for affordable housing.
Assistant City Manager and CFO Gavin Curran discussed funding opportunities dedicated to affordable housing and the impacts on the annual budget.
Mayor Bob Whalen confirmed with staff that an initial $500,000 would go into the housing fund this year.
City Manager Shoreh Dupuis stated that this resolution would go before the City Council annually as part of the budget adoption.
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Mayor Pro Tem Sue Kempf stated that the City Council had already approved transferring the TOT (Transient Occupancy Tax) revenue from new short-term lodging units and not the revenue from previously existing units to finance the housing fund, and she supported the proposed resolution.
Councilmember Alex Rounaghi commented that he agreed with Councilmember Weiss and he would like to discuss additional revenue streams at next year's budget discussions.
Moved by Councilmember George Weiss, seconded by Councilmember Alex Rounaghi, and carried unanimously 5/0 to approve funding policies for the Fiscal Year 2023-24 Proposed Budget by adopting Resolution #23.045 titled, "A RESOLUTION OF THE
CITY COUNCIL OF THE CITY OF LAGUNA BEACH, CALIFORNIA, TO RESTRICT
FUNDING IN THE DISASTER CONTINGENCY FUND, TRANSFER TRANSIENT
OCCUPANCY TAX REVENUE IN EXCESS OF BUDGET ESTIMATES TO THE HOUSING FUND, TRANSFER MID-YEAR BUDGET SAVINGS UP TO $300,000 TO
THE OPEN SPACE FUND, AND A CONTRIBUTION TOWARD THE POTENTIAL PURCHASE OF THE SOUTH LAGUNA COMMUNITY GARDEN."
REGULAR ORDER
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[Councilmember Request A was heard before Item #12]
12. TEMPORARY USE PERMIT 23-1215 AND COASTAL DEVELOPMENT PERMIT 23- 1216 TO ESTABLISH AND OPERATE A TEMPORARY ANIMAL CARE FACILITY LOCATED AT 20652 LAGUNA CANYON ROAD
City Manager Shoreh Dupuis introduced the item, and she described the process to accommodate the Pacific Marine Mammal Center (PMMC) as they undertake major renovations at their current location.
Mayor Pro Tem Sue Kempf commented that the Laguna Food Pantry, which would be adjacent to the temporary location, had been consulted prior to the approval of the relocation, and their concerns have been addressed.
Staff Report: Director of Community Development Marc Wiener gave a presentation discussing the Temporary Use Permit to operate a one-year temporary animal care facility at 20652 Laguna Canyon Road, a portion of the dog park.
Questions of Staff: Mayor Bob Whalen confirmed with staff that all of the findings could be made for the Coastal Development Permit.
Public Testimony: Glenn Gray, CEO for the PMMC, explained the importance of the improvements to the permanent PMMC location, and the need to create a temporary site for the marine mammals. He added that the temporary location at the dog park would be restored to its original condition after the PMMC moves back into its renovated facility. -7-
Laguna Beach City Council Minutes July 11, 2023
Mayor Bob Whalen confirmed with Gray that water reclamation is the chief rationale behind the renovations at the PMMC.
Anne Belyea, Executive Director of the Laguna Food Pantry, commented that they are in support of the project and the temporary installation of the PMMC would not negatively impact the distribution of food at the Laguna Food Pantry.
Debbie Neev commented on the importance of water reclamation, and she stated that she fully supported the project.
Penelope Milne, President of CANDO (Canyon Alliance of Neighborhoods Defense Organization), commented that she supports the project, but offered modifications to the design of the temporary facility to ensure safety for both the sea mammals and the dogs.
Ruben Flores voiced his support for the project.
Director of Community Development Marc Wiener responded to Milne's concerns pertaining to the setback standards of the temporary facility at the dog park.
Glenn Gray, CEO of the PMMC, addressed Milne's proposed modifications to the configuration of the temporary facility.
Councilmember George Weiss confirmed with Gray that there would be a "buffer zone" between the seals and the dogs, and the PMMC staff would use their existing parking.
Mayor Bob Whalen thanked the Friends of the Dog Park for working with the city to accommodate the PMMC.
Moved by Councilmember George Weiss, seconded by Councilmember Mark Orgill, and carried unanimously 5/0 to:
(1) Adopt Resolution #23.046 titled, "A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF LAGUNA BEACH, CALIFORNIA, APPROVING TEMPORARY USE PERMIT 23-1215 TO ESTABLISH AND OPERATE A TEMPORARY ANIMAL CARE FACILITY LOCATED AT 20652 LAGUNA CANYON ROAD" for a one-year period; and
(2) Approve Coastal Development Permit 23-1216 to establish and operate a temporary animal care facility located at 20652 Laguna Canyon Road for a one-year period. -8-
Laguna Beach City Council Minutes July 11, 2023
13. FIRST READING APPROVING GENERAL PLAN AMENDMENT 2023-0658, ZONING ORDINANCE AMENDMENT 2023-0659, AND LOCAL COASTAL PROGRAM AMENDMENT 2023-0660 RELATED TO REZONING TWENTY-SIX PARCELS OBTAINED THROUGH PROPOSITION 12 FUNDING TO OPEN SPACE Staff Report: Senior Administrative Analyst Louie Lacasella gave a presentation on the proposed rezoning of 26 parcels obtained through Proposition 12 funding to open space.
Questions of Staff: Mayor Bob Whalen asked how staff arrived at the conclusion that this action would not impact the city's capability to perform fuel modification or install underground utilities on the designated sites. Senior Administrative Analyst Louie Lacasella explained that the conclusions were based on the land use designation of Open Space Passive.
Public Testimony: Anne Caenn, Village Laguna president, commented that they support tonight's action and encouraged staff to acquire other underdeveloped parcels to maintain as open space. Penelope Milne, President of CANDO (Canyon Alliance of Neighborhoods Defense Organization), thanked the city for purchasing the sites and rezoning them to open space.
Councilmember Comments: Mayor Pro Tem Sue Kempf thanked staff for pushing this item forward.
Councilmember Mark Orgill thanked staff and he asked about fuel modification. Director of Community Development Marc Wiener explained the Open Space Passive designation.
Mayor Bob Whalen confirmed with staff the clerical clarifications that would be included in the proposed ordinance amendment.
Moved by Mayor Bob Whalen, seconded by Mayor Pro Tem Sue Kempf, and carried unanimously 5/0 to introduce the first reading of the Ordinance, as modified by staff, approving General Plan Amendment 2023-0658, Zoning Ordinance Amendment 2023- 0659, and Local Coastal Program Amendment 2023-0660 to amend portions of the General waive further reading of the Ordinance and to pass it to a second reading.
14. AWARD OF CONTRACT FOR SOLID WASTE FRANCHISE AGREEMENT Staff Report: Senior Analyst and Solid Waste Program Coordinator Liz Avila gave a presentation on the Request for Proposal (RFP) process to award the contract for the solid waste franchise agreement that would expire with Waste Management of Orange County on June 30, 2024.
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Trevor Blythe, Vice President of EcoNomics, Inc., continued with the presentation with the comparison rate analysis, revenues, costs and services between the two proposals submitted by Waste Management of Orange County and CR&R.
Senior Analyst and Solid Waste Program Coordinator Liz Avila concluded the presentation listing staff recommendations.
Questions of Staff: Councilmember Alex Rounaghi asked staff to elaborate on the issues and concerns pertaining to the current solid waste provider, Waste Management (WM).
Senior Analyst and Solid Waste Program Coordinator Liz Avila outlined the issues with WM related to the management, and she gave examples.
Councilmember Alex Rounaghi asked about WM's request for an exception to the provision related to rate increases due to changes in state law. Trevor Blythe, Vice President of EcoNomics, Inc. explained the language in the extraordinary cost of adjustment that would compel the city to accept certain changes in cost that WM itemized in their exception, and he described the existing methodology in the current contract with WM.
Councilmember Alex Rounaghi stated that he evaluated the cost differences between WM and CR&R, and he found the most substantial variance was the cost of labor. He confirmed with staff that should the city award CR&R; the WM truck drivers would be given the opportunity to move to CR&R. Rounaghi inquired as to whether those drivers that moved from WM to CR&R would retain their seniority and level of pay.
City Attorney Patrick Munoz answered that state law stipulates that those jobs be offered to the drivers; however, he said he was not familiar with the specifics of the employment contracts. He added that WM and CR&R are members of the same labor union.
Councilmember Alex Rounaghi stated that a key element to an agreement with a solid waste provider would be the ability to employ drivers that could navigate the difficult roads in Laguna Beach.
Mayor Pro Tem Sue Kempf asked about number three of WM's exceptions listed in the presentation. Trevor Blythe, Vice President of EcoNomics, Inc., answered that this exception related to customer service issues that had not been resolved.
Mayor Pro Tem Sue Kempf asked about the comparison of the proposed use of electric vehicles (EV), and CR&R's offer to credit ratepayers if operational cost-savings of EV exceeded projections. Trevor Blythe, Vice President of EcoNomics, Inc. explained the proposed process to credit ratepayers.
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Mayor Pro Tem Sue Kempf asked if CR&R expressed any concerns with navigating the streets in Laguna Beach safely. Trevor Blythe, Vice President of EcoNomics, Inc. answered that CR&R ran pilot tests with specialty vehicles on the more difficult streets in town and those results were part of their proposed approach in the proposal. He added that staff were confident with CR&R's prior experience in other cities, and this would be brought to bear in Laguna Beach.
Councilmember George Weiss stated that the report from staff was comprehensive, and he appreciated staff's time and energy on the process. He said he agreed with Councilmember Rounaghi and he was hopeful that a change in the provider would not involve lower wages for the drivers. He asked for additional information regarding number three of WM's exceptions listed in the presentation. Trevor Blythe, Vice President of EcoNomics, Inc. presented specific examples of the 63 customer service issues specified in the exceptions.
Public Testimony: Employees of WM and residents spoke on behalf of continuing WM as a provider of solid waste to the City of Laguna Beach and they listed their reasons.
Julie Barreda, Senior Vice President of CR&R, listed the reasons CR&R should be awarded the agreement per staff's recommendation. She added that should the contract be awarded to CR&R, they would be happy to welcome any drivers from WM, represented by the same local labor union, and she stated that CR&R's wages in Orange County are the same as the WM employees today.
Mayor Bob Whalen asked Barreda to describe how CR&R addressed the biggest issues when transitioning service to a new city. Julie Barreda, Senior Vice President of CR&R, responded that it would be important to train drivers and work closely with the incumbent hauler and the city.
Mayor Bob Whalen confirmed with Barreda that there would be a dedicated customer service line.
Councilmember Alex Rounaghi voiced concerns about a shortage of drivers, and he was assured by CR&R that they were prepared to supply the necessary number of drivers to handle Laguna Beach's needs.
Councilmember George Weiss asked about transitioning to EVs. Julie Barreda, Senior Vice President of CR&R, answered that Laguna Beach would be the first electric collection vehicle.
Questions of Staff: Councilmember George Weiss asked staff to respond to WM's comment that CR&R had been given preferential treatment and the evaluation indicated an uneven playing field in favor of CR&R
Trevor Blythe, Vice President of EcoNomics, Inc. responded to the comments by WM management.
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Senior Analyst and Solid Waste Program Coordinator Liz Avila added that as the franchise agreement administrator for 18 years, she had noticed a deterioration in service from WM management in the last few years, and she explained.
Councilmember Alex Rounaghi confirmed with the City Attorney that under the Public Resources code, there was a provision that allowed the city to evaluate the franchise agreement proposals on any basis that it deemed appropriate, and it did not require that the city award the lowest financial bid.
Councilmember Mark Orgill clarified that CR&R's commercial rates are higher than WM's rates.
Councilmember Comments: Mayor Bob Whalen praised WM's drivers; however, he said an extensive RFP process had been conducted and staff had based its recommendation on nine evaluation criteria. He commented that over an 8-year contract working with CR&R rather than WM would save residents $14 million. Mayor Whalen stated that this had been a competitive and thorough process and he would support the staff's recommendation to award the contract to CR&R.
Councilmember George Weiss said he appreciated the drivers' loyalty to the city and he hoped they would continue to service the residents through CR&R. He stated that CR&R had provided better feedback on the proposal than WM. Councilmember Weiss commented that he supported awarding the contract to CR&R.
Councilmember Alex Rounaghi stated that awarding the contract came down to cost, reliability, and safety. He asserted that the experience in Laguna Beach of a provider was undervalued in the RFP process and although he believed CR&R could do a good job, WM had 40 years of success, receiving only a few complaints from residents. Councilmember Rounaghi clarified that WM's exception to request a rate increase due to changes in state law was a process discussion rather an outcome concern. He questioned the self-reported pilot test of CR&R compared with 40 years of WM navigating the challenging roads of Laguna Beach and he voiced concerns that drivers would not switch from WM to CR&R.
Councilmember Rounaghi stated that the WM drivers had connected with the community, which could not be overlooked. He emphasized the importance of keeping our residents happy with safe and reliable trash service, and the need to work through management bureaucracy. He supported awarding the contract to WM and working out the exceptions listed in the presentation.
Councilmember Mark Orgill commented that he agreed with much of what Councilmember Rounaghi stated, and he added that WM management failed to address issues in the RFP process. He said that if the issues with management could be open for discussion and resolved, then he could support awarding the contract to WM. -12-
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Mayor Pro Tem Sue Kempf stated that she agreed with Mayor Whalen and the added costs to residents would be significant over time. She said she did have major concerns about the transition of driver reliability from WM to CR&R. Mayor Pro Tem Kempf commented that WM failed to manage the city properly and dropped the ball. She said that although she appreciated the 40-year-long history with WM, she supported staff's recommendation to award the contract to CR&R.
Moved by Mayor Bob Whalen, seconded by Mayor Pro Tem Sue Kempf, and carried 3/2 (Councilmembers Orgill and Rounaghi dissenting) to:
(1) Award Franchise Agreement #23-132 for the collection, transportation, processing and diversion of recyclable materials, food scraps, yard trimmings, construction, transportation and disposal of municipal solid waste, to CR&R Incorporated, to commence on July 1, 2024, and continue for eight years; (2) Adopt Resolution #23.047 titled, "A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF LAGUNA BEACH APPROVING THE EXCLUSIVE FRANCHISE
AGREEMENT BETWEEN THE CITY OF LAGUNA BEACH AND CR&R,
INCORPORATED FOR THE COLLECTION, TRANSPORTATION, PROCESSING
AND DIVERSION OF RECYCLABLE MATERIALS, FOOD SCRAPS, YARD
TRIMMINGS, CONSTRUCTION, TRANSPORTATION AND DISPOSAL OF
MUNICIPAL SOLID WASTE AND AUTHORIZING THE CITY MANAGER TO
EXECUTE THE AGREEMENT REPEALING ALL RESOLUTIONS
INCONSISTENT HEREWITH"; and
(3) Authorize the City Manager to execute the contract on behalf of the City with any non- substantive changes approved by the City Manager.
COMMITTEE REQUEST
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15. REQUEST FROM THE CITIZENS' AUDIT REVIEW AND INVESTMENT ADVISORY
COMMITTEE TO CONTINUE EVALUATING OUTSOURCING THE MANAGEMENT
OF THE CITY'S INVESTMENT PORTFOLIO
Glenn Gray, Citizens' Audit Review and Investment Advisory Committee, commented that tonight's item was before the City Council to help in establishing a best practice, and it was not a vote of no confidence against the City Treasurer. He said that it would be prudent to obtain outside advice to evaluate the city's $170 million investment portfolio.
Mayor Bob Whalen confirmed with Gray that should tonight's item move forward, the committee would return to the City Council with recommendations to outsource the management of the city's investment portfolio or to continue with the existing management approach.
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Public Testimony: John Thomas stated that it would be good practice to conduct an RFP and evaluate proposals from qualitied firms for the purpose of either providing investment advice and performance evaluation, or for outsourcing management of the investment portfolio. He asked several questions concerning the investment portfolio and the role of the City Treasurer.
Mayor Pro Tem Sue Kempf suggested that the Assistant City Manager/CFO prepare a draft RFP to be reviewed by the subcommittee. A discussion ensued regarding the process to prepare a draft RFP.
City Treasurer Laura Parisi addressed Thomas' comments regarding the investment policy.
A discussion ensued.
Councilmember Comments: Mayor Bob Whalen stated that supporting evaluation of the investment portfolio did not undervalue the City Treasurer's role, but rather would help to determine how the city's investment portfolio faired compared to other cities.
Councilmember George Weiss commented that he was not certain of the goal, was it to improve the city's investment policy or investment return, and how would this impact the City Treasurer's role.
City Manager Shoreh Dupuis stated that the City Treasurer had conducted an investment return comparison report and Laguna Beach was reported to have had the lowest returns compared to the cities in the analysis. She said that if the portfolio were managed differently, the returns could have generated an additional $1-2 million. Councilmember George Weiss responded that perhaps the goal of the proposals was to improve the investment performance by outsourcing.
Councilmember Alex Rounaghi argued that the proposals could come back stating that the method the city utilized to manage its investments was currently the best approach, but at least other alternatives were analyzed.
Mayor Bob Whalen highlighted that the City Treasurer's responsibilities encompassed many other functions aside from the investment portfolio.
City Treasurer Laura Parisi responded to the statement that the city reported lower returns to comparable cities, explaining the reasons for the lower earnings.
Mayor Bob Whalen suggested conducting a comparable report over five years to obtain more reliable information.
Councilmember George Weiss raised John Thomas' question pertaining to the municipal code that stipulated that the city grant the authority to allocate the power to invest to the Treasurer annually. City Attorney Phil Kohn responded clarified the general default rule for managing the investment program. He stated that the portion of the code Mr. Thomas quoted did authorize the City Council to delegate this responsibility to the City Treasurer on an annual basis.
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Laguna Beach City Council Minutes July 11, 2023
Moved by Councilmember Alex Rounaghi, seconded by Councilmember Mark Orgill, and carried unanimously 5/0 to:
(1) Direct the Assistant City Manager/CFO, in collaboration with the City Treasurer, to prepare a draft of the RFP to be reviewed by a subcommittee of the Committee prior to release;
(2) Direct the Committee and key stakeholders, including the City Treasurer, City Council liaison Mayor Pro Tem Kempf, City Manager, and Assistant City Manager/CFO, to collectively examine the received proposals and assess their viability; (3) Direct the Committee to prepare a report summarizing the results and recommendations to be presented to the City Council, outlining a recommendation to outsource the management of the city's investment portfolio or continue with the existing management approach; and
(4) Provide a five-year look back on the City's investment portfolio as compared to others.
COUNCILMEMBER REQUESTS
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[Councilmember Request A was heard before Item #12]
A. RENAMING TOP OF THE WORLD PARK TO WILLIAM M. WILCOXEN PARK (KEMPF)
Staff Report: Recreation Supervisor Alexis Braun introduced the item.
Laguna Beach High School teacher Jun Shen gave a presentation created by Laguna Beach High School seniors, Jackson Flemming and Hailey Weng, expressing their reasons for renaming Top of the World Park to William M. Wilcoxen Park.
Public Testimony: Jennifer Wilcoxen Rosenfeld thanked the students for the remembrance of her father and for preserving Laguna Beach history. Stan Kramer, Laguna Beach resident, stated that he appreciated the dedication and commitment William M.
Wilcoxen took to preserve the treasures in Laguna Beach, and the city's acknowledgement of his accomplishments. Tawnie Flores, past Laguna Beach teacher, commented on the connection between Top of the World school and the park, and stated that it would be an honor to name the park after Mr. Wilcoxen. Roger Kempler, Recreation Committee, stated that this was a great opportunity to remember an outstanding community leader and highlight Mr. Wilcoxen's accomplishments. He said this action would educate and inspire individuals to create positive change in our community.
Councilmember Alex Rounaghi confirmed with Kempler that the Recreation Committee could create a formal process for naming parks.
Jacob Cherub commented on the legacy of Mr. Wilcoxen, and he supported naming a park after him.
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Laguna Beach City Council Minutes July 11, 2023
Moved by Mayor Pro Tem Sue Kempf, seconded by Councilmember George Weiss, and arried unanimously 5/0 to approve the renaming of Top of the World Park to William N Vilcoxen Park and authorize the installation of a new park identification sign [Councilmember Request B was heard after Appeal Al
RESOLUTION SUPPORTING ASSEMBLY CONSTITUTIONAL AMENDMEN
ACA) 12 RELATING TO CONTROLLED SUBSTANCES (ROUNAGHI
Moved by Councilmember Alex Rounaghi, seconded by Councilmember George Weiss, and carried unanimously 5/0 to adopt Resolution #23.048 titled, "A RESOLUTION OF
THE CITY COUNCIL OF THE CITY OF LAGUNA BEACH, CALIFORNIA,
SUPPORTING ASSEMBLY CONSTITUTIONAL AMENDMENT (ACA)
RELATING TO CONTROLLED SUBSTANCES."
PUBLIC HEARING FOR APPEAL
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[Appeal A was heard before Councilmember Request B]
A. APPEAL OF APPROVAL OF DESIGN REVIEW 22-1633, VARIANCE 22-1634 AND REVOCABLE ENCROACHMENT PERMIT 22-1635 FOR ADDITIONS TO AN EXISTING SINGLE-FAMILY DWELLING AT 31101 BROOKS STREET IN THE R-1 Staff Report: Assistant Planner Daniel Latham gave a presentation summarizing the appeal of Design Review Board (DRB) approval for improvements to an existing home at 31101 Brooks Street.
Juestions of Staff: Mayor Bob Whalen confirmed with the City Attorney that th tandard of review for the design review portion was an abuse of discretion, and th variance standard of review was de novo.
Public Testimony in Support of the Appeal: Shane Firuzbakkt, appellant, stated that the reason for the appeal was that the DRB did not fairly consider the view equity standards, and they abused their discretion by not protecting the neighbor's white-water ocean view with the office and bathroom additions. Steve Kawaratani, representing the appellant, commented that this was not about the quantity of view loss, but rather it was the quality of the view that would be lost, and he explained. Robert Waltman and Philip Lowberg, neighbors, stated that they supported the appellant's appeal and they described. -16-
Laguna Beach City Council Minutes July 11, 2023
Public Testimony in Opposition to the Appeal: Larry Nokes, attorney representing the applicant, commented that modifications had been made to accommodate the neighbors. He said the variance had no impacts, and this had to do with a view equity qualification. Nokes said DRB was very careful with their findings and the design review criteria had been met.
Warren Hutcherson, contractor for the project, explained the variance. Gregg Abel, architect for the project, described the modifications for the neighbors, and he added that view equity had been made. Douglas Warner, owner and applicant, commented that concessions had been made for the neighbors, and noted that the appellants had a 360- degree view.
Rebuttal: Shane Firouzbakkt, appellant, stated that the DRB had made recommendations that were not followed. He said the compromise would be to bring in the bathroom by 2 feet.
Councilmember Comments: Councilmember Alex Rounaghi stated that there had not been any meaningful evidence to suggest that the variance was not based on proper findings. He commented that view equity had been met and he explained.
Councilmember Mark Orgill said the DRB looked at the entire view and, based on his calculations, the neighbor was experiencing only about a four percent view loss. He did not believe the DRB abused their discretion.
Assistant Planner Daniel Latham listed the findings for the variance.
Mayor Pro Tem Sue Kempf stated that she did not find an abuse of discretion and she could make the findings for the variance.
Mayor Bob Whalen commented that there had been no abuse of discretion and the DRB conducted a robust discussion on view equity.
Moved by Mayor Pro Tem Sue Kempf, seconded by Councilmember Alex Rounaghi, and carried unanimously 5/0 to deny the appeal and sustain the Design Review Board's approval of Design Review 22-1633, Variance 22-1634 and Revocable Encroachment Permit 22-1635 at 31101 Brooks Street.
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Laguna Beach City Council Minutes July 11, 2023
ADJOURNMENT
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There being no further business, Mayor Whalen at 11:26 p.m.., Tuesday, July 11, 2023, adjourned to the Closed Session at 4:00 p.m. and to the hybrid virtual/in-person Regular City Council Meeting at 5:00 p.m. on Tuesday, July 25, 2023, at City Hall, 505 Forest Avenue, Laguna Beach California.
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Approved: July 25, 2023 Pollal
Bob Whalen, Mayor
i Maine Mickay, Cry chaiy
NOTE: THE MEETING MINUTES REPRESENT ACTIONS TAKEN DURING THE MEETING OF THE CITY COUNCIL. DISCUSSIONS THAT OCCURRED DURING THE
MEETING CAN BE VIEWED IN ARCHIVED VIDEO RECORDINGS ON THE CITY'S WEBSITE AT LAGUNABEACHCITY.NET/MEETINGS. PUBLIC SUBMITTALS ON
ITEMS ARE RETAINED IN THE ADMINISTRATIVE RECORD AND CAN BE VIEWED IN THE CITY CLERK'S REPOSITORY AT LAGUNABEACHCITY.NET.
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NOTICE OF ADJOURNMENT OF CITY COUNCIL MEETING
(GOVERNMENT CODE SECTION 54995
EXCERPT OF THE MINUTES OF THE
HYBRID VIRTUAL/IN-PERSON REGULAR MEETING
OF THE CITY COUNCIL OF THE CITY OF LAGUNA BEACH
Jully 11, 2023
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The hybrid virtual/in-person Regular Meeting of the City Council of the City of Laguna Beach was held at 5:00 p.m., Tuesday, July 11, 2023, in the City Council Chambers, 505 Forest Avenue, Laguna Beach, California.
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PRESENT COUNCILMEMBERS: Orgill, Rounaghi, Weiss, Kempf, Whalen PARTICIPATING REMOTELY: None
ABSENT: COUNCILMEMBERS: None
ADJOURNMENT
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There being no further business, Mayor Whalen at 11:26 p.m., Tuesday, July 11, 2023, adjourned to the Closed Session at 4:00 p.m., and hybrid virtual/in-person Regular City Council Meeting at 5:00 p.m., Tuesday, July 25, 2023, at City Hall, 505 Forest Avenue, Laguna Beach, California.
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STATE OF CALIFORNIA )
COUNTY OF ORANGE SS.
CITY OF LAGUNA BEACH
I, Ann Marie McKay, City Clerk of the City of Laguna Beach, California, do hereby certify that the foregoing is a full, true, and correct copy of the Minute entry on record in my office. IN WITNESS WHEREOF, I hereunto set my hand and affix the official seal of the City of Laguna Beach, California, on this 12' day of July 2023.
NNCORPORATES
JUNE 29.192
ANGE COUN CANTO
CERTIFICATE OF POSTING
NOTICE OF ADJOURNMENT
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1, Ann Marie McKay, City Clerk of the City of Laguna Beach, California, DO CERTIFY that at the hybrid virtual/in-person Regular Meeting of the City Council held on Tuesday, July 11, 2023, said meeting was ordered adjourned to the time and place specified in the notice of adjournment, ATTACHED HERETO; and that on July 12, 2023, at the hour of 10:00 a.m., a copy of the Notice was posted at a conspicuous place on or near the door of the place at which said meeting of the City Council was held.
ity Clerk of the City of Laguna Beach, California