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HomeMy WebLinkAbout03/25/1996 - Regular MeetingCITY OF NEWPORT BEACH City Council Minutes Regular Meeting March 25, 1996 - 7:00 p.m. INDEX • CLOSED SESSION - Canceled CLOSED SESSION REPORT PRESENTED - None REGULAR MEETING- 7:00 a.m. Mayor Pro Tern Debay publicly thanked the Community Services Department, the Rotary Club of Newport Beach and the Elks Club for their involvement in the Special Olympics Program held at Corona del Mar High School on Saturday, March 16, 1996. ROLL CALL Present: O'Neil, Edwards, Debay, Glover, Wall and Mayor Hedges Absent: Cox Motion by Mayor Pro Tem Debay to waive reading of the minutes of the meeting of March 11, 1996, to approve as written and order filed. Council Member Glover questioned whether the policy had changed regarding public input on the correction of the Council minutes. City Clerk Harkless replied that to her knowledge there had been no change. Mayor Hedges stated that the minutes are a document approved by the City Council and if there is a public correction to be made the Council has the ability to correct those on the motion • of an individual Council Member or if there is a factual correction then the clerk has the ability to make that correction also. Dolores Otting, Newport Beach, said the minutes used to be available to the public, however now they are available only after the Council has approved them, therefore the ability of the public to correct the minutes is no longer available. In the past she said the public was able to pick up the minutes of the last meeting with the new agenda. She requested that a draft copy be made available to the public. City Clerk Harkless reported that the draft minutes are available in the Clerk's office and explained that the change that has been made is that the minutes are not widely distributed (mailed to the people on the mailing list, etc.) until approved by Council. The motion carried by the following roll call vote: Ayes: O'Neil, Edwards, Debay, Glover, Watt and Mayor Hedges Noes: None Absent: Cox Abstain: None Motion by Mayor Pro Tem Debay to waive reading of the ordinances and resolutions under consideration, and direct the City Clerk to read by titles only. The Volume 50 - Page 101 motion carried by the following roll call vote: . Ayes: O'Neil, Edwards, Debay, Glover, Waft and Mayor Hedges Noes: None Absent: Cox Abstain: None Volume 50 - Page 101 • • City of Newport Beach City Council Minutes March 25, 1996 Mayor Hedges requested that staff bring back revisions to Council policy A -5 regarding fundraising /contracts by City boards, commissions or committees. CONSENT CALENDAR Council Member O'Neil reported that he will abstain from discussing or voting on Item No. 10, the gas sale agreement with Hoag Hospital, since he is general counsel for the hospital board of directors. ORDINANCES FOR INTRODUCTION 1. Removed from Consent Calendar. INDEX 2. INTRODUCE ORDINANCE NO. 96 -14, Amending Section 11.04.020 Ord 96 -14 (Prohibited Conduct) of the Newport Beach Municipal Code to Allow Pkg /Pblc Prks Parking of Cars in Public Parks for Activities Authorized by Special Event (27/85) Permits, and pass to second reading on April 8, 1996. ORDINANCES FOR ADOPTION 3. Removed from Consent Calendar. 4. ADOPT ORDINANCE NO. 96.11 Amending Section 12.68.060 of the Newport Beach Municipal Code to Establish a Residential Parking Permit Program for Portions of Newport Heights and Cliff Haven. 5. Removed from Consent Calendar. RESOLUTIONS FOR ADOPTION 6. Removed from Consent Calendar. Ord 96 -11 Residential Pkg Permit /Npt Hght: & Cliff Haven(8c 7. ADOPT RESOLUTION OF INTENT NO. 96.29 to Amend Chapter 20.76 of the Time -Share Newport Beach Municipal Code to Modify Development and Operational PCA 845 Regulations for Time -Share Projects (Planning Commission Amendment No. Res 96 -29 (94) 845) and Refer to the Planning Commission for Public Hearing. 8. ADOPT RESOLUTION NO. 96 -30 Authorizing the Acceptance of a Fire Department of Toxic Substances Control Grant in the Amount of $5,304 to Res 96 -30 (41) Purchase Hazardous Materials Emergency Response Equipment. CONTRACTS AND AGREEMENTS 9. BOB HENRY PARK CONSTRUCTION (CONTRACT NO. 3078) - AWARD OF Bob Henry Prk CONTRACT - Approve contract with Los Angeles Engineering, Inc., in the C -3078 (38) amount of $930,155 (Option 3) and contingency of $90,000; and APPROVE BUDGET AMENDMENT (BA -034) In the Amount of $189,000 from BA-034 (40) Unappropriated Park- in -Ueu Fees. 10. Removed from Consent Calendar. 11. REDESIGN OF THE SECTION 5 (LITTLE BALBOA ISLAND) WASTEWATER PUMP Little Bal Is STATION (CONTRACT NO. 2935) - AWARD OF PROFESSIONAL SERVICES Wstwtr pmp Sta AGREEMENT Authorize execution of a Professional Services Agreement C -2935 (38) with AKM Consulting Engineers to prepare plans and specifications for a not to exceed fee of $132,906. Volume 50 - Page 102 • • City of Newport Beach City Council Minutes March 25, 1996 INDEX 12. WATERLINE, STORM DRAIN AND INGRESS AND EGRESS EASEMENT AND Grndwtr Dev Prj LICENSE AGREEMENT WITH THE FIRST BAPTIST CHURCH AS PART OF THE 1st Baptist Ch GROUNDWATER DEVELOPMENT PROJECT (CONTRACT NO. 3004 -Y) - C- 3004 -Y (38) APPROVAL OF AGREEMENT AND PAYMENT TO FIRST BAPTIST CHURCH - Approve and authorize the execution of the agreement and approve payment of $43,381 to the First Baptist Church as compensation for the easement and agreement. 13. CONSTRUCTION OF WATER WELLS LOCATED AT THE DOLPHIN AVENUE AND Grndwtr Dev Prj, TAMURA SCHOOL WELL SITES AS PART OF THE GROUNDWATER DEVELOPMENT Dolphin & Tamurz PROJECT (CONTRACT NO. 3004 -S) - AWARD OF CONTRACT - Approve the School Wells plans and specifications for the construction of the water wells; award the C- 3004 -S (38 ) contract in the amount of $799,044.75 to Bakersfield Well & Pump Company of Bakersfield, as the low bidder, and adopt the finding contained in the staff report pertaining to Addendum No. 4 to the Final EIR, Hydrogeologic Evaluation for the Groundwater Development Project. 14. WELL SITE DEVELOPMENT - PHASE I FOR DOLPHIN AVENUE AND TAMURA Grndwtr Dev Prj/ SCHOOL WELL SITES AS A PART OF THE GROUNDWATER DEVELOPMENT PH I Dolphin & PROJECT (CONTRACT NO. 3004 -R) - AWARD OF CONTRACT - Approve the Tamura School plans and specifications and award the contract in the amount of $155,030 C- 3004 -R (38 ) to ARA Engineering Contractors of Buena Park as the low bidder. 15. IRVINE AVENUE AND UNIVERSITY DRIVE CLASS -1 BIKE TRAIL AND STREET Irvine Av & IMPROVEMENTS PROJECT (CONTRACT NO. 2851) - APPROVAL OF CONTRACT Univ Dr Cls -1 AMENDMENT - Approve execution of Amendment No. 2 to the existing Bike Trl /St Imp Engineering Design Services Consultant Agreement with IWA Engineers and C -2851 (38) authorize execution of Construction Engineering Services Agreement with IWA Engineers. 16. RESUBDIVISION NO. 866 (Resubdivision No. 319 and Parcel 1 of Parcel Map Resub 866 83 -705 - Resubdivision No. 742) located at 1400 Dove Street and Newport Dove /Npt Pl Place Drive in the Newport Place Planned Community (Developer - Walden (8 4 ) and Associates, Santa Ana; New Owner - Advent Realty Limited Partnership 11) - APPROVAL OF AGREEMENT - Approve a Subdivision Extension Agreement guaranteeing payment of 1/3 of the cost of the traffic signal at the intersection of 1400 Dove Street and Newport Place as required by Resubdivision No. 866. 17. 15TH STREET REHABILITATION AND STORM DRAIN AND WATER MAIN 15th St Rehab & CONSTRUCTION FROM OLD NEWPORT BOULEVARD TO IRVINE AVENUE Strm Drn /Wtr Mn (CONTRACT NO. 2661) - APPROVAL OF PLANS AND SPECIFICATIONS AND C -2661 (38) AUTHORIZATION TO BID - Affirm the categorical exemption; approve the plans and specifications; and authorize staff to advertise for, bids. 18. STRUCTURAL ADA (AMERICAN WITH DISABILITIES ACT) ALTERATIONS (CONTRACT Structural ADA NO. 2948) - APPROVAL OF PLANS AND SPECIFICATIONS AND AUTHORIZATION Alterations TO BID - Affirm the categorical exemption; approve the plans and C -2948 (38) specifications; and authorize staff to advertise for bids. 19. ROADSIDE LANDSCAPE MAINTENANCE CONTRACT - AWARD OF CONTRACT - CA Landscape Approve a contract In the amount of $195,820.48 with California landscape Mntnc /Roadsd Maintenance; and APPROVE BUDGET AMENDMENT (BA -038) to the amount of iMntnc C -2160 (38 $14,801 to fund the Increased cost of the contract for the final three (3) months BA-038 (4 0 ) of FY 1995 -96. MISCELLANEOUS ACTIONS 20. COUNCIL POLICY MANUAL REVISIONS /ADDITIONS. Continue to April 8, 1996. Volume 50 - Page 103 City of Newport Beach City Council Minutes March 25, 1996 INDEX Council Member Glover said she always gets complaints from residents in her neighborhood about traffic speed, therefore questioned why staff is proposing increasing the speed limits from 25 mph to 30 mph in residential areas. Public Works Director Webb explained that radar cannot be used as an enforcement tool if the posted speed limits are not set in accordance with the rules set by the state legislature. He explained that the basic process used to determine speed limits is to sample the speed of traffic on a street and identify the "critical speed," which is that speed at or below which 85% of the traffic is moving. Mayor Pro Tern Debay pointed out that the speed limits are only being increased on segments of arterial streets and the neighborhood streets are not included based on the reasons stated by Council Member Glover. Council Member Watt stated that this was discussed by the Utilities /Public Works Committee and she reiterated the comments made by Mayor Pro Tern Debay. She said there is a move by bicyclists for "traffic calming" and if the City could ever figure out a way to slow down traffic this would be • reviewed again. Mayor Hedges reiterated that this change will allow the Police Department to use radar as an enforcement tool. Volume 50 - Page 104 21. PLANNING COMMISSION AGENDA - March 21, 1996. (68 ) 22. BALBOA PENINSULA PLANNING ADVISORY COMMITTEE VACANCY - Accept Balboa Pnsla with regrets the letter of resignation from Carol Hoffman, Member At large, Ping Advsry CmtE and schedule the appointment to fill the vacancy on a future agenda. (2 4 ) • 23. BA -035, $46,000 - For Traffic Management Association dues and alternate BA -035 (40) fuels program - Establishment of AQMD budget. 24. Removed from Consent Calendar. 25. PURCHASE OF SIX (6) 1996 CHEVROLET CAPRICE POLICE PATROL CARS - BA -037 (40) Approve the purchase of the subject cars from Wondrles Chevrolet of Alhambra for $121,535.54 including tax; and APPROVE BUDGET AMENDMENT (BA -037) in the amount of $121,535.54 from the Internal Service Fund Reserves. MOTION BY MAYOR PRO TEM DEBAY TO APPROVE THE CONSENT CALENDAR, EXCEPT FOR THOSE ITEMS REMOVED (1, 3, 5, 6, 10 & 24). THE MOTION CARRIED BY THE FOLLOWING ROLL CALL VOTE: Ayes: O'Neil, Edwards, Debay, Glover, Watt and Mayor Hedges Noes: None Absent: Cox Abstain: None ITEMS REMOVED FROM THE CONSENT CALENDAR 1. INTRODUCE ORDINANCE NO. 96 -13, Amending Chapter 12.24 (Special Ord 96 -13 Speed Zones) of the Newport Beach Municipal Code to Update Speed Traffic /Speed Limits on Various Roads Within the City of Newport Beach, and pass to Limits (85) second reading on April 8, 1996. Council Member Glover said she always gets complaints from residents in her neighborhood about traffic speed, therefore questioned why staff is proposing increasing the speed limits from 25 mph to 30 mph in residential areas. Public Works Director Webb explained that radar cannot be used as an enforcement tool if the posted speed limits are not set in accordance with the rules set by the state legislature. He explained that the basic process used to determine speed limits is to sample the speed of traffic on a street and identify the "critical speed," which is that speed at or below which 85% of the traffic is moving. Mayor Pro Tern Debay pointed out that the speed limits are only being increased on segments of arterial streets and the neighborhood streets are not included based on the reasons stated by Council Member Glover. Council Member Watt stated that this was discussed by the Utilities /Public Works Committee and she reiterated the comments made by Mayor Pro Tern Debay. She said there is a move by bicyclists for "traffic calming" and if the City could ever figure out a way to slow down traffic this would be • reviewed again. Mayor Hedges reiterated that this change will allow the Police Department to use radar as an enforcement tool. Volume 50 - Page 104 City of Newport Beach City Council Minutes March 25, 1996 Public Works Director Webb pointed out that the ordinance proposes to decrease the speed limit on four arterials as noted in "Exhibit 4." Motion by Council Member Edwards to introduce Ordinance No. 96 -13 amending Chapter 12.24 (Special Speed Limits) and pass H to second • reading on April 8, 1996. The motion carried by the following roll call vote: Ayes: O'Neil, Edwards, Debay, Glover, Waft and Mayor Hedges Noes: None Absent: Cox Abstain: None 3. ADOPT ORDINANCE NO. 96 -10 Amending Chapter 17.24 (Structures in the Harbor) of the Newport Beach Municipal Code Authorizing the Fire and Marine Chief, or his Designee, to Approve Harbor Permit Applications Without Council Approval with Appeals to the City Manager and Appealable by the City Council; and APPROVE REVISIONS TO COUNCIL POLICY H -1. Mayor Hedges questioned staff's ability to use discretion to approve harbor permit applications since it does not provide any flexibility. City Manager Murphy explained that the ordinance requires specifically that the application be denied if it does not conform to the provisions of the code, standard harbor drawings approved by the Council, and the Harbor Permit Policy adopted by the Council. He pointed out that the policy addresses the exceptions. City Attorney Burnham suggested that in order to clarify Council's intent • the word "and" be changed to "or" so the ordinance reads: "The application shall be denied if: 1. The application does not conform to the provisions of this Code, standard harbor drawings approved by the City Council, or the Harbor Permit Policy adopted by the City Council, or..." Motion by Mayor Hedges to adopt Ordinance No. 96.10 (as modified) amending Chapter 17.24 (Structures in Harbor) and to approve the revisions to Council Policy H -1. The motion carried by the following roll call vote: Ayes: O'Neil, Edwards, Debay, Glover, Waft and Mayor Hedges Noes: None Absent: Cox Abstain: None INDEX Ord 96 -10 Harbor Permit Apl Aprvl (51) Council Policy H -1 (69) 5. ADOPT ORDINANCE NO. 96.12 Amending Chapter 10.04 of the Newport I Ord 96 -12 Beach Municipal Code to Allow Service of Alcohol on Public Property With Alcohol /Pblc a Special Permit Application Approved by City Council. Property (2 7 ) Dolores Otting, Newport Beach, questioned whether the applicants will be required to provide additional insurance which can be quite costly. Mayor Hedges explained that the additional insurance requirement is standard with a special event permit and this code amendment would allow the consumption of alcoholic beverages on public property in conjunction with an approved special event permit. He noted that the insurance requirement is already in place and the cost would be a factor the applicant would have to consider. Volume 50 - Page 105 • City of Newport Beach City Council Minutes March 25, 1996 In response to Ms. Citing's question about the possible cost, City Manager Murphy said he thought she had this ordinance confused with the outdoor dining ordinance. He explained that this amendment arises out of requests for alcohol consumption at special events such as the Back to Bal Carnival and the Taste of Newport and this ordinance will allow this type of activity with an approved special event permit. Council Member Edwards pointed out that Condition #20 of the Back to Bal special event permit requires that the permittee provide $1,000,000 liability insurance naming the City of Newport Beach as additional insured. Motion by Council Member Edwards to adopt Ordinance No. 96 -12 amending Chapter 10.04 of the NBMC to allow service of alcohol on public property with a special permit application. The motion carried by the following roll call vote: Ayes: O'Neil, Edwards, Debay, Glover, Waft and Mayor Hedges Noes: None Absent: Cox Abstain: None 6. ADOPT RESOLUTION NO. 96 -28 Approving Appendix A "Designated Positions" of the Conflict of Interest Code. City Attorney Burnham explained that the appendix was modified to include two additional positions from the Police Department (Administrative Services Lieutenant and Operational Services Coordinator - disclosure category 2). Motion by Council Member O'Neil to adopt Resolution No. 96.28 approving Appendix A "Designated Positions" of the Conflict of Interest Code as amended to Include the two positions as stated by the City Attorney. Mayor Hedges asked Council Member O'Neil If he would consider including the addition of Building Inspectors with disclosure categories 3 and 4 as part of his motion. Council Member O'Neil agreed to the inclusion of the Building Inspectors as part of his original motion. The motion carried by the following roll call vote: Ayes: O'Neil, Edwards, Debay Noes: None Absent: Cox Abstain: None Glover, WaH and Mayor Hedges 10. GAS SALE AGREEMENT WITH HOAG MEMORIAL HOSPITAL PRESBYTERIAN - APPROVAL OF AGREEMENT - Approve agreement for the sale of natural gas to Hoag Memorial Hospital Presbyterian. City Attorney Burnham explained that there are some minor modifications that need to be made to some of the provisions of the agreement and requested that Council authorize approval of an agreement substantially similar to the proposed agreement and authorize the Mayor to execute the revised agreement after the modifications are made. Council Member Glover questioned whether gas was deregulated in the State of California and, if so, what impact would it have on the agreement. Volume 50 - Page 106 INDEX Conflict of Int (66) Res 96 -28 Hoag Memorial Hsptl Gas Sale C -2493 (38) City of Newport Beach City Council Minutes March 25, 1996 Motion by Council Member Watt to approve the agreement for the sale of natural gas to Hoag Memorial Hospital Presbyterian with the proviso that the Mayor work with the City Attorney on the minor administrative revisions. Dolores Otting, Newport Beach, voiced concerns with staff's consideration • to utilize the gas through an on -site City owned co- generation system, with the electricity generated used to operate the City's oil field and other local facilities. She questioned why the City would consider this since it is usually cheaper for private industry to do. Mayor Hedges indicated that the City is keeping the options open. The motion carried by the following roll call vote: Ayes: Edwards, Debay, Glover, Watt and Mayor Hedges Noes: None Absent: Cox Abstain: O'Ne6 (Note: During the consideration of the Consent Calendar, Council Member O'Neil explained that he would not be voting on this item since he is general legal counsel for the Hoag Hospital Board of Directors.) 24. BA -036, $20,000 - To part-time salaries from library donations. Dolores Otting, Newport Beach, said she thought this was on a previous Council agenda and questioned whether donations can be accepted for part-time salaries. She said this is an issue that has been before the Board of Trustees because they want to obtain donations to fund full -time staff. • She questioned whether this is the policy the Council wants to set in place. City Manager Murphy indicated that he did not believe this was a duplicate Budget Amendment. He said there have been several donations approved by the City Council at the last three meetings. In this particular case, he explained that the City has $12,000 in the General Fund budget for the Literacy Program which is to be matched by donations. He indicated that the $20,000 is the matching donation which will support the program at a reduced level this year. He said that without the donations and appropriation of the money for the program, the program would have to be funded from General Fund revenues. Council Member Glover asked if the Literacy Program budget is $32,000. Mr. Murphy explained that this year the City's commitment is $12,000. Community Services Director Kienitz explained that the total expenditures this year for the literacy Program is $32,000 ($12,000 from the City's General Fund). She further explained that this budget amendment is actually a clean -up since the funds were donated in July to run the program this year, however in the course of the budget process the money was turned in but did not make it to the City Council agenda. She said that the Literacy Program has been funded using these donations, however the funds were never officially appropriated. Motion by Council Member O'Neil to approve 1A -036 in the amount of • $20,000 from library donations to be used for part-time salaries. The motion carried by the following roll call vote: Volume 50 - Page 107 INDEX BA -036 (40) City of Newport Beach City Council Minutes March 25, 1996 Ayes: O'Neil, Edwards, Debay, Glover, Watt and Mayor Hedges Noes: None Absent: Cox Abstain: None INDEX • PUBLIC HEARINGS 26. PUBLIC HEARING REGARDING THE 1995 UPDATE AND REVISION TO THE CITY 1995 Updt /Rvsn OF NEWPORT BEACH URBAN WATER MANAGEMENT PLAN. NB Urban Wtr 1Mgm Plan (89) Utilities Manager Eldon Davidson explained that the first update of the Urban Water Management Plan was adopted by the City Council in November of 1990. He said that the plan has to be updated every five years, a public hearing is required and it must be filed by March 31, 1996. He stated that the Plan addresses the following: 1) general information including utility size, population served and number of service connections; 2) water use history including past, current and projected consumption; 3) current water conservation measures; 4) alternative conservation measures with an evaluation of costs and environmental factors; 5) frequency and magnitude of supply deficiencies including drought and emergency plans for short-term deficiencies; and 6) implementation schedule of planned water conservation measures. He noted that the City's water conservation ordinance is included in the plan. In response to Mayor Pro Tern Debay's question about if the City is responding to Curt Pringle's bill that bases water quotas on the previous year's use, which the City doesn't have, Mr. Davidson indicated that the City is reviewing that issue, however it does not affect this plan. Council Member Watt stated that at the Utilities /Public Works Committee meeting the committee discussed the fact that this is a five -year plan, however it can be updated at any time. She indicated that at the meeting Mayor Hedges suggested reviewing the phasing and usage restrictions of the plan. She stated that the first three phases of Section 14.16.050, permanent water usage restrictions, are a little bit more restrictive than need to be at the moment so they are left on the books only to be raised if someone wanted to raise them. She said they should be reviewed again and alternatives considered. Mayor Hedges noted that on page 24 of the Urban Water Management Plan staff has addressed a customer based incentive driven water rate structure, which is what Council Member Watt is talking about. He said that the City needs to get away from the regulatory tone of the existing drought ordinance since the restrictions are difficult to enforce. He said that staff is addressing that aspect of the plan to make it more market driven. Mayor Hedges opened the public hearing and hearing no testimony, closed the hearing. Motion by Council Member O'Neil to approve the City's Urban Wafer Management Plan for 1995. • Mayor Pro Tem Debay commended staff on their accomplishment over the last several years on the water project. Mayor Hedges requested that staff investigate expanding the ultra -low flush toilet program to multi - family residential and commercial properties. Volume 50 - Page 108 City of Newport Beach City Council Minutes March 25, 1996 The motion carried by the following roll call vote: Ayes: O'Neil, Edwards, Debay, Glover, Wait and Mayor Hedges Noes: None Absent: Cox • Abstain: None PUBLIC COMMENTS • Phil Sansone, Corona del Mar, addressed the Council regarding the necessity for defeating Measure S at the polls on Tuesday. • Steve Stafford, 3250 Broad, voiced complaints about the Building Department personnel and questioned when the problems in the department will be rectified. • Larry Root, 1012 Polaris, addressed the Council on the implications of voting down the airport. He indicated that the Federal Transportation Authority has identified the Los Angeles to San Diego corridor as a priority corridor. He also provided information about some planned rail improvements. • Bing Girling, 200 Crystal Avenue, urged the residents of Orange County to vote no on Measure S. • Dolores Offing, Newport Beach, questioned the changes made to the water reserve and sewer reserve funds. • Mayor Hedges reported that he toured the Balboa Theater that was • purchased and is being renovated and restored by the Wortmann family. He said it will really be an asset and will rival the Balboa Pavilion once it's completed. He said that a non - profit organization, the Balboa Theater Foundation, has been formed to support the theater and once they get their non - profit status from the government they will be holding fund- raisers. He urged anyone who would like to support the group and the efforts of the Wortmann family in restoring the Balboa Theater to call the City for more information. CONTINUED BUSINESS 27. ECONOMIC DEVELOPMENT COMMITTEE VACANCIES. Mayor Hedges indicated that he did not have nominees to fill the vacancies on the Economic Development Committee (representatives for the Building Industries Association, Lido Business District and Cannery Business District). Motion by Mayor Hedges to continue the appointments until April 22, 1996. The motion carried by the following roll call vote: Volume 50 - Page 109 INDEX Economic Dev Committee (24) Ayes: O'Neil, Edwards, Debay, Glover, Watt and Mayor Hedges Noes: None Absent: Cox • Abstain: None Volume 50 - Page 109 INDEX Economic Dev Committee (24) City of Newport Beach City Council Minutes March 25, 1996 CURRENT BUSINESS 28. LANDFILL DISPOSAL FEES. Council Member O'Neil noted that one of the options proposed by staff is • the potential use of the El Sobrante landfill owned by Western Waste Industries. He reported that since Western Waste is a client of his he would abstain from taking any action on this matter and from any other involvement with this issue in the future. He said he will not be talking to his City Council colleagues, staff or anyone else about this matter. Since this was the last item on the agenda Council Member O'Neil also requested and was granted permission to leave the the meeting as well. City Manager Murphy reported that one of the five primary goals that the Council adopted for 1996 is to determine the optimal solid waste disposal solution for the City. He said that this is a unique and important item to Newport Beach since the City has an initiative ordinance which requires the City to pay all the cost of collection and disposal of rubbish and refuse. He said that the landfill tipping rates have been raised from $22.75 to $35.00, a net cost of about $193,000. He said that the City needs to look at where to ultimately deposit the waste stream in the future to guarantee the lowest and most stable cost for the long term. He explained that prior to 1992 there was no tipping fee for the County landfills and until a week ago when it was reduced to $27.00 it was $35.00. Mr. Murphy indicated that the three options available are to stay with the County, assuming they retain ownership of the landfills; moving with a flow - control agreement with the Orange County Sanitation district, presuming the Sanitation District buys the landfills; or look at an outside provider, a private owner and operator of the landfill. He said the City had discussions with private • owners and came to the conclusion that there is really only one that is truly viable. He said staff is asking Council to look at the options and instruct them to continue to pursue the three options that have been identified. He said that for every day the City delays lowering the costs and getting a long term option, the City is at risk of the cost increasing and potentially spending money that may not need to be spent if a cheaper more stable long -term option can be found. He explained that a policy committee of the County Sanitation District indicated that they would recommend to the full board that they no longer pursue the acquisition of the landfills. Referring to an exhibit attached to the staff report which identifies the sites, addresses, the life -span and the cost per ton, Mr. Murphy said that staff's conclusion is that there are very few options. General Services Director Niederhaus reiterated that this is a very fluid situation which changes from week to week. He said staff is really concerned about identifying a long -term economical location in which to dispose of the solid waste stream (about 45,000 tons per year). Council Member Glover questioned whether the City really wants a long- term commitment since the County is in such flux and the situation may be just too fluid for a long -term commitment at this point. City Manager Murphy said that since the County board came to the • conclusion that they either want to retain the system or look at privatizing the system, there has been a good deal of concern on the part of the cities about the public sale of the landfills without some sort of control on rates. He said that in the future an option may come back to the Council that instead of having the County look at privatizing and selling the landfills that they retain them but give the cities more control in the rate Volume 50 - Page 110 INDEX Landfill Dspsl Fees (44) City of Newport Beach City Council Minutes March 25, 1996 setting and operation. He indicated that the City cannot absorb these types of increases every year without looking at some reductions in services, therefore there needs to be a long -term sustainable solution. In response to Council Member Glover, Mr. Murphy indicated that the Board of Supervisors has indicated it will take 2 -5 years to do anything. • Mayor Pro Tern Debay reported that as a Director on the Sanitation District Board she was one of four that voted against the District taking over the landfills. She said that everyone is looking for alternatives to landfills and as noted in the staff. report, County landfills have declined 34% in the past five years and expect to drop an additional 23 % by the year 2000. She said this means that the cost of maintaining the closed landfills has to be covered by the tonnage, which is an indication that the price will go up at all landfills. Mr. Niederhaus pointed out that an important element in the Western Waste proposal is not just the ten -year stability of waste disposal, but also the inclusion of transportation to the landfill, as well as indemnification. He said these are the three important elements needed in solid waste management for the next ten years. Council Member Edwards asked what the current rate is ($27.00) and asked if the City could get $18.50 without the indemnification. He asked what the cost would be to out - source the CERCLA indemnification. Mr. Niederhaus indicated that it would probably be impossible to buy because the City would be dealing with a private landfill and there would be a host of liability issues. Council Member Edwards asked if anyone at the County considered the possibility of having the cities purchase, as a group, the policy in order to get the cost down to as low as $22.50. Mr. • Murphy said that clearly the County felt the price was too low, so the cities would have to raise the price to get the Board's attention and he doesn't know if the cities have the financial wherewithal to put together a plan to buy it. He said the Sanitation District proposal, while it wasn't the cities formally as entities, would effectively have been the cities because they would have each had a seat on the Board. He also stated that the City has some serious concerns because the BKK landfill is closing and they have also had some superfund issues related to another portion of their operations, so that is probably not an option. Council Member Glover stated that she served on a committee for the League of Cities and the committee considered the possibility of forming a JPA (Joint Powers Agreement) regarding the landfills. She said it would be possible to decrease the fees if certain management decisions were made. She said the committee did review the suggestions made by Council Member Edwards and they did not think they were viable. Phil Sansone, Newport Beach, stated that he served on the County Integrated Waste Management Commission for four years, and cautioned the City to proceed very slowly on this. He verified that the tonnage is decreasing every year because of the diversion created by AB939. He also cautioned that the Board has already stated that any city that pulls out of depositing trash in the County landfill will be liable for their portion of the household hazardous waste program. • Madelene Arakelian, owner of South Coast Integrated Refuse System and President of Greater Los Angeles Haulers Association, reported that she is on a committee that is looking for alternatives to landfills in all the jurisdictions and it would be a foolish move to make a ten -year commitment.' Volume 50 - Page 111 INDEX Landfill Dspsl Fees City of Newport Beach City Council Minutes March 25, 1996 Dolores Offing, 5 Star Rubbish Co., Newport Beach, voiced concerns about Council Member O'Neil's representation of Western Waste. She gave cash flow projections from the County of Orange; addressed indemnification by the County for imported trash; the sale of Western Waste to USA Waste; the reference to moving quickly on this issue; questioned what a long -term agreement is; and what implication an agreement would have on the independent haulers in the City. Motion by Mayor Pro Tern Debav to receive the update on landfill options and alternatives: direct staff to continue to monitor and evaluate Sanitation District and Orange County solid waste disposal proposals; to continue negotiations with Western Waste Industries for a long term solid waste disposal contract utilizing El Sobrante Landfill in Corona; and to return to Council with a recommended alternative for long term landfill disposal at the earliest possible date once the direction is clear with the County Sanitation District and Western Waste. She said Council is not instructing staff to move quickly, but carefully. Council Member Edwards reiterated that Council is not trying to rush this issue and agreed that the City needs to move extremely cautiously, but as stated by Mayor Hedges, the City is caught literally between the proverbial rock and a hard place because the City will be hit with fees that appear to be escalating until something is locked in. He said that based on what he heard from all the speakers, clearly finding the best price for the City of Newport Beach is everyone's primary concern. Mayor Hedges explained that the City's solid waste disposal is paid for by the City's General Fund. The motion carried by the following roll call vote: Ayes: Edwards, Debay, Glover, Wait and Mayor Hedges Noes: None Absent: Cox Abstain: O'Neil MOTION FOR RECONSIDERATION - None ADJOURNMENT - 8:40 p.m. The agenda for this meeting was posted on March 20, 1996 of 5:10 p.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administrative Building. Attest: I i, ,& City Clerk Mayor Volume 50 - Page 112 INDEX ( Landfill Dspsl Fees