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HomeMy WebLinkAbout11/13/2012 - Regular MeetingCITY OF NEWPORT BEACH City Council Minutes Regular Meeting November 13, 2012 — 7:00 p.m. I. STUDY SESSION - 3:30 p.m. II. CLOSED SESSION - 4:44 p.m. A. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION INITIATION OF LITIGATION (Government Code § 54956.9(c)): 1 potential case B. CONFERENCE WITH LABOR NEGOTIATORS (Government Code §'54957.6) Agency Designated Representatives: Dave Kiff, City Manager and Terri Cassidy, Deputy City Manager/Human Resources Director; Negotiators. Employee Organizations: All Labor Associations: Association of Newport Beach Ocean Lifeguards (ANBOL); Newport Beach City Employees Association (NBCEA); Newport Beach Employees League (LABEL); Newport Beach Firefighters Association (NBFA); Newport Beach Fire Management Association (NBFMA); Lifeguard Management Association (NBLMA); Newport Beach Part Time Unit (UPEC, Local 777); Newport Beach Police Association (NBPA); Newport Beach Police Management Association (NBPMA); Newport Beach Professional and Technical Association (NBPTEA) C. PUBLIC EMPLOYEE PERFORMANCE EVALUATION (Government Code § 54957) Title: Aaron C. Harp, City Attorney III. RECESS IV. RECONVENED AT 7:00 P.M. FOR REGULAR MEETING V. ROLL CALL Present: Council Member Hill, Council Member Rosansky, Mayor Pro Tem Curry, Mayor Gardner, Council Member Selich, Council Member Henn, Council Member Daigle VI. CLOSED SESSION REPORT - None VII. PLEDGE OF ALLEGIANCE - Council Member Hill VIII. INVOCATION - Mayor Pro Tern Curry DL PRESENTATIONS Volume 60 - Page 639 City of Newport Beach City Council Minutes November 13, 2012 Proclamation Awarded to the CERT Program and Volunteers for the National FEMA Award Mayor Gardner read and presented the proclamation to Karen Tringali, Member of the CERT Program, who expressed her appreciation for the support of the program. Presentation on Vector Control Activity in Newport Beach Jared Dever, Director of Communications of the Orange County Vector Control District, and Michael G. Hirsh, District Manager, utilized a PowerPoint presentation on Vector Control activities in the City. He discussed the definition of a vector, the Vector Control's goals and responsibilities, categories of vectors, and vector diseases in Orange County, including West Nile Virus. He addressed the mosquito life cycle and breeding sources, amount of treated gutters and storm drains, unique habitats within the City, urban runoff, tidal fluctuations, and aerial surveillance. He presented information on Flea -borne Typhus, including the suburban transmission cycle, methods to reduce risks of the disease and trends through the years. He announced information on the organization's new website and additional Vector Control programs. Discussion also ensued regarding species of mosquitoes that breed in the Back Bay and the role of the scorpion in the ecosystem. X. NOTICE TO THE PUBLIC Kip Mayor Pro Tem Curry reported attending the Southwest County Conference and visiting Crystal Cove. Further, he participated in the Navy League Conference. Council Member Daigle commented positively on the Memorial Bike Ride event including participation, location and staff support. She also reported touring the new Civic Center. Council Member Hill announced that the Memorial Bike Ride has raised $60,000 which the City will be matching on a 3 -to -1 basis. He reported that Amazon.com will donate 6% of sale proceeds from purchases made on NewportBeachMemorialRide.com. Council Member Henn reported that the Tidelands Management Committee meeting scheduled for November 21 will be changed to November 28. Mayor Gardner announced the upcoming Mayor Walk around Santa Ana Heights at 9:00 a.m. on November 15. She also reported attending the Sunrise Rotary Club. XII. CONSENT CALENDAR A. READING OF MINUTESIORDINANCES AND RESOLUTIONS 1. MINUTES FOR THE OCTOBER 23, 2012 SPECIAL AND REGULAR MEETINGS. [100 -2012] Waive reading of subject minutes, approve as amended, and order filed. 2. READING OF ORDINANCES AND RESOLUTIONS. Waive reading in full of all ordinances and resolutions under consideration, and direct the City Clerk to read by title only. Volume 60 - Page 640 City of Newport Beach City Council Minutes November 13, 2012 B. RESOLUTIONS FOR ADOPTION 3. RESOLUTION SUPPORTING AN APPLICATION BY CITY OF COSTA MESA FOR OCTA MEASURE M2 TRAFFIC SIGNAL SYNCHRONIZATION PROGRAM FOR NEWPORT BOULEVARD CORRIDOR SYNCHRONIZATION PROJECT. [100- 20121 Adopt Resolution No. 2012 -94 supporting the City of Costa Mesa application for the OCTA Measure M2 Traffic Signal Synchronization Program for the Newport Boulevard Corridor Synchronization Project. 4. EMERGENCY MANAGEMENT PERFORMANCE GRANT AUTHORIZATION. [100- 2012] Adopt Resolution No. 2012 -95 authorizing the City Manager and the Fire Chief to act as the "Authorized Agents" to execute for and on behalf of the City any actions necessary to obtain federal financial assistance provided by the Federal Emergency Management Agency ( "FEMA') and sub - granted through the State of California. C. CONTRACTS AND AGREEMENTS 5. TERMINATION OF HOUSING ASSISTANCE AGREEMENT WITH THE CITY MANAGER (C- 4398), AND RELEASE OF ASSOCIATED PROMISSORY NOTE AND DEED OF TRUST. 1381100 -20121 a) Authorize the Mayor to execute the agreement terminating the Housing Agreement between the City and the City Manager; b) acknowledge that the promissory note recorded against the Property is discharged and direct the City Clerk to mark the promissory note as "PAID IN FULL'; and c) authorize the Mayor, City Clerk and City Attorney to take all required actions, including executing the Request for Full Reconveyance and transmit the same to First American Title Insurance Company to release the second deed of trust against the property. 6. 2012 -2013 SIDEWALK, CURB AND GUTTER REPLACEMENT - AWARD OF CONTRACT C -5204. [38/100 -20121 a) Approve the project drawings and specifications; b) award Contract No. 5204 to Grigolla & Sons Construction Company, Inc., for the total bid price of $491,400 and authorize the Mayor and City Clerk to execute the contract; c) establish an amount of $49,000 (10 %) to cover the cost of unforeseen work not included in the original contract; and d) approve Budget Amendment No. 13BA -019 transferring $206,600 in project savings from the Fashion Island Area Streets Overlay - Account No. 7281-C2002046 (Measure M Turnback) to Account No. 7281-C2001009 (Sidewalk Curb and Gutter Replacement). This amendment also recognizes $4,800 in revenues to (Account 9010 -5901) for private contributions from Lido Isle Community Association and appropriates $4,800 to 7013- C2001009. (Council Members Hill and Rosanshy recused themselves on this item) 7. FY2012 -2013 TRAFFIC SIGNAL REHABILITATION PROJECT - AWARD OF CONTRACT C -5223. [381100 -20121 a) Approve the project drawings and specifications; b) award Contract No. 5223 to Dynalectric, for the total bid price $201,672 and authorize the Mayor and City Clerk to execute the contract; and c) establish a contingency of $30,000 (approximately 15 percent) to cover the cost of unforeseen work. D. MISCELLANEOUS 10. CULTURAL ARTS GRANTS, 2012/13. [100 -20121 Approve recommended recipients for Volume 60 - Page 641 City of Newport Beach City Council Minutes November 13, 2012 YY2012/13 Cultural Arts Grants as selected by the City Arts Commission in accordance with City Council Policy 1 -10 - Financial Support for Culture and the Arts. 11. AGREEMENT FOR REFUSE CONTAINER COLLECTION SERVICES (C- 5275). [381100 -20121 Authorize the Mayor and City Clerk to enter into an agreement with Robert's Waste & Recycling, Inc. to provide non - residential refuse collection services. 13. PROPOSED ORGANIZATIONAL CHANGES IN THE LIFE SAFETY SERVICES DIVISION OF THE FIRE DEPARTMENT. 1100 -2012] a) Establish the Life Safety Specialist occupational series with a salary range of $60,722 to $103,417 annually (LSS I /II/III) and consolidate the Fire Prevention Specialist, Fire Prevention Plans Examiner, and Community Preparedness Coordinator job classifications into the series; and b) adopt Resolution No. 2012 -102 establishing Life Safety job classification and salary ranges. 517. PLANNING COMMISSION AGENDA REPORT FOR NOVEMBER 8, 2012. [100- 20121 Receive and file. Regarding Item 5 (Termination of Housing Assistance Agreement with the City Manager, and Release of Associated Promissory Note and Deed of Trust), Council Member Henn noted that the City Manager has voluntarily paid the City's loan in full and commended him for doing this. Council Member Rosansky reported that he and Council Member Hill will be recusing themselves from Item 6 since they both own property within 500 feet of the subject property. Motion by Mayor Pro Tem Curry, seconded by Council Member Rosanskv to approve the Consent Calendar, except for the items removed (8, 9 and 12); and noting the recusal by Council Members Rosansky and Hill on Item 6. The motion carried by the following roll call vote: Ayes: Council Member Hill, Council Member Rosansky, Mayor Pro Tem Curry, Mayor Gardner, Council Member Selich, Council Member Henn, Council Member Daigle XIII. ITEMS REMOVED FROM THE CONSENT CALENDAR 8. REQUEST TO RETAIN EXISTING NON - STANDARD PRIVATE IMPROVEMENTS WITHIN THE PUBLIC RIGHT -OF -WAY AT 224 AGATE AVENUE. [100 -20121 Dan Purcell expressed concern regarding making sidewalks more accessible to senior citizens and the disabled. He encouraged Council to consider this type of item more carefully in the future. Motion by Council Member Selich, seconded by Mayor Pro Tem Curry to waive City Council Policy L-6, Private Encroachments in the public Rights -of -Way, to allow for raised brick planters to encroach up to 4.5 feet into the Agate Avenue right -of -way at 224 Agate Avenue, contingent upon all conditions of the Encroachment Permit process being met. The motion carried by the following roll call vote: Ayes: Council Member Hill, Council Member Rosansky, Mayor Pro Tem Curry, Mayor Gardner, Council Member Selich, Council Member Henn, Council Member Daigle 9. REIMBURSEMENT OF THE NEWPORT CENTER TREE REPLACEMENT COSTS. [100- 20121 Volume 60 - Page 642 City of Newport Beach City Council Minutes November 13, 2012 City Manager Kiff described the item and recommended completing payment per the current, agreement, but also have a discussion of the agreement going forward. He addressed City Attorney direction regarding the need to update the agreement. Dan Miller, The Irvine Company, and Council discussed areas covered under the current agreement and the need to update the agreement. Motion by Mayor Pro Tem Curry. seconded by Council Member Selich to a) direct staff to transmit funds in the amount of $122,621 to The Irvine Company representing the City's share of costs for Newport Center tree replacements in accordance with the Letter Agreement dated February 5, 1985, between The Irvine Company and the City of Newport Beach; and b) approve Budget Amendment No. 13BA -020 appropriating $122,621 from the General fund balance reserves to Account No. 3170.8250. Jim Mosher believed that the agreement is not binding on the City, addressed the City's obligations to follow its rules, and highlighted terms of the agreement. He believed that there is no obligation by the City to reimburse the costs; The motion carried by the following roll call vote: Ayes: Council Member Hill, Council Member Rosansky, Mayor Pro Tem Curry, Mayor Gardner, Council Member Selich, Council Member Henn, Council Member Daigle 12. CORONA DEL MAR LANE MERGE RELOCATION TRIAL - TRAFFIC ANALYSIS. [100- 20121 Mayor Gardner addressed the speed limit where Sharrows exist. She noted that the Corona del Mar Business Improvement District has requested a continuance until January 2013. Motion by Mayor Gardner, seconded by Council Member Selich to continue the item to the January 8, 2013 City Council meeting. Richard Nichols commented on the increased traffic resulting from the trial and expressed concerns over reduced safety for bicyclists. He presented alternatives, including leaving the area in its original condition and believed that implementing bicycle lanes on Coast Highway is hazardous. The motion carried by the following roll call vote: Ayes: Council Member Hill, Council Member Rosansky, Mayor Pro Tem Curry, Mayor Gardner, Council Member Selich, Council Member Henn, Council Member Daigle XIV. PUBLIC COMMENTS Homer Bludau, Member of the Newport Beach Chamber of Commerce Commodores and the Executive Committee of Visit Newport Inc., presented a personal invitation to Council to the Sixth Annual Mayor's and Council reception to be held on December 11, starting at 6:00 p.m. at Back Bay Bistro. He noted that tickets are $25. Jim Mosher commented on the passage of Measure EE and discussed obligations of Council imposed by the passage of the measure, especially related to the payment of bills. XV. ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES - None Volume 60 - Page 643 City of Newport Beach City Council Minutes November 18, 2012 XVI. CURRENT BUSINESS 14. COMMERCIAL TIDELANDS USES - SETTING RENT. [100 -20121 City Manager Kiff introduced the item and discussed the Ad Hoc Committee, details of the proposed recommendations for other commercial tideland uses as listed in the staff report. He addressed appraisals received, examples of the various proposed rates, rent rates paid by surrounding areas, the survey of gas prices in surrounding areas, gas dock pricing, and Committee recommendations. He addressed approved rents and the phase -in period, and the updated large commercial marina proposal by the Ad Hoc Committee. Seymour Beek, partner in Island Marine Fuel, spoke in opposition to going to a per gallon system, but agreed with the Rasmussen proposal. Gary Hill, Island Marine Fuel, agreed with Mr. Beek, especially as it relates to the Rasmussen proposal and keeping with the calculation of square footage rather than gallons sold. Christine Daggert, representing the Newport Beach Dock Owners' Association, believed that the City is piecemealing the process when CEQA requirements require looking at the project as a whole for potential effects on the environment. She urged Council to send notices to residential owners and commented on property taxes paid on their docks by property owners. She believed that there is a need to slow down and hold multiple workshops on the matter. Gary Pickett, representing Ardell Marina, addressed the new large commercial marina proposal compared to what was already passed. He expressed concerns regarding condensing the phase -in period, increasing the annual fee, and problems with future appraisals. He asked that Council consider yacht b: okerages related to the matter and expressed disappointment that the City has not visited any of the Harbor businesses to determine implications of the proposed increases on marina - related businesses. He stated that he prefers the resolution that has already been approved. Judy Gorski, Commodore of the Balboa Yacht Club, thanked Council for its actions and reported on the programs held at the Club. She expressed concern with the economic impacts of the proposed increases in the Harbor. Discussion ensued relative to the appraisal process, benefits to the gallon - related calculations compared to implementing a flat rent fee, similar actions by surrounding cities, and further review by the Ad Hoc Committee and Council to ensure that the decisions made are internally consistent with each other. Council Member Rosansky noted that it is Council's intention that the revenues collected will be reinvested back into the Harbor for additional improvements. Motion by Council Member Rosanskv, seconded by Council Member Selich to a) adopt Resolution No. 2012 -96 amending Resolution No. 2012 -91 and Resolution No. 2012 -92 relating to Large Commercial Marinas; b) adopt Resolution No. 2012 -97 approving a model lease template and model permit for commercial tidelands uses; c) adopt Resolution No. 2012 -98 setting fair market value rent for commercial tidelands uses and d) direct the Ad Hoc Committee on Harbor Charges to review and make recommendations to the rents and other charges considered by the City Council to date (any other rents later proposed and adopted) to ensure that they are fair and equitable. This shall be done prior to December 31, 2013. Volume 60 - Page 644 City of Newport Beach City Council Minutes November 13, 2012 Council Member Daigle indicated that she does not support the first three recommendations Mayor Pro Tern Curry indicated that the revised program was created at the request of the larger marina owners and commended the Ad Hoc Committee for its efforts on this matter. He believed that the revisions more closely represent the desires of the larger marina owners. Council Member Hill noted that he is most concerned for small business owners and commended the revisions recommended by the Ad Hoc Committee. City Manager Kiff clarified that staff proposes a phase -in period for small marinas so that when they catch up to the large marina amounts, they will be phased in. He stated that the same percentage increase would be applied for small marinas with an adjustment in their phase -in period. Council Member Hill requested that City Manager Kiffs comments be made a part of the motion and Council Member Rosansky and Council Member Selich agreed to the amended motion. Amended motion by Council Member Rosanskv, seconded by Council Member Selich to a) adopt Resolution No. 2012 -96 amending Resolution No. 2012 -91 and Resolution No. 2012 -92 relating to Large Commercial Marinas, including an amended phase -in period for small commercial marinas; b) adopt Resolution No. 2012 -97 approving a model lease template and model permit template for commercial tidelands uses; c) adopt Resolution No. 2012 -98 setting fair market value rent for commercial tidelands uses; and d) direct the Ad Hoc Committee on Harbor Charges by December 31, 2013, to review and make recommendations to the tidelands rents considered by the City Council to date to ensure the rent is fair and equitable. The amended motion carried by the following roll call vote: Ayes: Council Member Hill, Council Member Rosansky, Mayor Pro Tem Curry, Mayor Gardner, Council Member Selich, Council Member Henn Noes: Council Member Daigle 15. FOX LAWSON & ASSOCIATES' EXECUTIVE MANAGEMENT CLASSIFICATION AND COMPENSATION STUDY. [100 -2012] City Manager Kiff introduced the item, described the purpose of the study, and noted the need for every employee to be within a compensation range. Deputy City Manager Cassidy presented background information and the need to bring the City into compliance with CalPERS regulations. She addressed the study, methodology, reasons for the study, and turnover at the executive level going forward. She indicated that Council needs to select the desired classifications and ranges. Discussion ensued relative to the possibility of keeping the current compensation levels and establishing ranges accordingly. Bruce Lawson, Fox Lawson and Associates, addressed the City's compensation levels, inconsistencies with the current market rates, and the need to set a structure going forward. He also addressed the methodology for job evaluations, the scope and tasks assigned, incorporating public sector numbers rather than private sector numbers, and building a structure using current comparable agencies. He presented information on proposed ratings, job categories, and hierarchy. Regarding decision bands and developing the classification structure, Mr. Lawson stressed that Volume 60 - Page 645 City of Newport Beach City Council Minutes November 13, 2012 no increases are being recommended for any individual. He also stated that a new structure is needed that would allow for flexibility and would bring the City into current pay practices for current and future employees. Council Member Henn commented positively on the approach, believed that it is a myopic approach because it only considers salary, addressed the importance of a program that would allow flexibility in hiring and maintaining quality employees, and noted existing checks and balances within the proposed system. He presented results of testing the new structure and Council Member Henn presented examples of how the new structure would work using various department director positions. Discussion followed regarding the proposed ranges, minimum and maximum salary ranges, the importance of having an established structure to reflect realities, revising the evaluation system, and providing increases based on performance set by targets. Mr. Lawson explained developing the compensation structure and the related graph. City Manager Kiff noted that there are no current employees that are outside of the proposed ranges. Council Member Henn clarified the recommended actions to be taken on this item. He indicated a preference to pay for performance and not be locked into a structure that encourages paying above median without assurances of performance above the median. He expressed concern with incentivizing performance and recommended the 50th percentile range, but return with recommendations to establish a 10% bonus potential as a performance incentive. City Manager Kiff indicated that he would need to return to Council with how to establish performance measures going forward and defining expectations for each position. He also expressed a preference for a one -time incentive. The report would also discuss the merit side of compensation including an incentive program that would affect total bonus potentials and structuring performance measurements that would allow bonus payments. Discussion followed regarding the City's ranking related to the other comparable cities, and deferred compensation payments related to ensuring continued employment and performance. Jim Mosher indicated confusion about the matter and reported that the City already has salary ranges posted on its website. He questioned the compliance issue and whether it relates to Council not having previously approved the matter. He also questioned the methodology used and believed that the rating numbers have been manipulated. He addressed the importance of considering total compensation and suggested ignoring the report and having Council set the ranges as desired. Motion by Council Member Henn. seconded by Council Member Selich to a) modify the Key and Management Compensation Plan by adopting Resolution No. 2012 -100 establishing Executive Management salary ranges at the market 50th percentile; and b) bring back an accompanying merit -based incentive program for the specified 14 positions. The motion carried by the following roll call vote: Ayes: Council Member Hill, Council Member Rosansky, Mayor Pro Tern Curry, Mayor Gardner, Council Member Selich, Council Member Henn Noes: Council Member Daigle 16. AMENDED AND RESTATED EMPLOYMENT AGREEMENTS FOR THE CITY MANAGER (C -4358) AND CITY CLERK (C- 4100). [381100 -2012] City Attorney Harp indicated that he prepared separate resolutions for each of the positions Volume 60 - Page 646 City of Newport Beach City Council Minutes November 13, 2012 Jim Mosher believed that the staff report does not explain how the recommended increases were developed and did not explain the recommended bonuses. He expressed opposition to the item. Motion by Council Member Rosansky, seconded by Council Member Henn to adopt Resolution No. 2012 -99 approving and authorizing the Mayor and Deputy City Clerk to execute the Amended and Restated Employment Agreement for the City Manager. The motion carried by the following roll call vote: Ayes: Council Member Hill, Council Member Rosansky, Mayor Pro Tern Curry, Mayor Gardner, Council Member Selich, Council Member Henn, Council Member Daigle Motion by Council Member Hill, seconded by Council Member Henn to adopt Resolution No. 2012 -101 approving and authorizing the Mayor and Deputy City Clerk to execute the Amended and Restated Employment Agreements for the City Clerk. The motion carried by the following roll call vote: Ayes: Council Member Hill, Council Member Rosansky, Mayor Pro Tem Curry, Mayor Gardner, Council Member Selich, Council Member Henn, Council Member Daigle XVII. MOTION FOR RECONSIDERATION - None XVIII. ADJOURNMENT - Adjourned at 9:25 p.m. in memory of Ray Watson The agenda for the Regular Meeting was posted on November 8, 2012, at 4:40 p.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. The supplemental agenda for the Regular Meeting was posted on November 9, 2012, at 3:30 p.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. City Clerk Recording Secretary . ac� Mayor Volume 60 - Page 647