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HomeMy WebLinkAbout03/08/1999 - Study SessionCITY OF NEWPORT BEACH City Council Minutes Study Session March 8, 1999 - 4:00 p.m. ROLL CALL INDEX Present: Adams, Glover, Thomson, Debay, Ridgeway, Noyes, Mayor O'Neil Absent: None CURRENT BUSINESS 1. CLARIFICATION OF ITEMS ON THE CONSENT CALENDAR. In reference to Item #3, Resolution Adjusting the Compensation of the City Clerk, Council Member Adams requested that the resolution be revised to pertain to the person and not to the position. Council Member Glover asked if for Item #12, City /County Newport Harbor Joint Powers Mooring, the issue was looked at in correlation with the tidelands issues raised earlier by Council Member Debay. • Mayor Pro Tem Thomson questioned whether the agreement with IMUA in Item #7, Proposed Ordinance Allowing Overnight Vessel Storage on Beaches, creates a value for IMUA. City Attorney Burnham stated that the agreement could be modified to include a provision that would make the permit non - transferable, therefore assuring that value will not be created for IMUA by allowing overnight boat storage. Mayor Pro Tem Thomson requested that the ,support services contract to Bucknam & Associates, as outlined in Item #1.1, Professional Services for Program Management Associated with Federal Funding Appropriation Request for FY 1999 -2000 for Water and Wastewater Infrastructure Systems, be modified to "not to exceed $14,500". Council Member Debay referred to Item #13, American Red Cross Shelter Facility Agreement, and announced that the Disaster Preparedness Coordinator will be meeting with Neighborhood Watch at 5:30 p.m. on March 9, 1999. Council Member Ridgeway confirmed with Fire & Marine Chief Riley that Item #16, Budget Amendment for Paramedic Training, involved both a revenue factor and a cost factor. Fire & Marine Chief Riley stated that the net cost, exclusive of the revenue adjustment, was approximately $107,000. Council Member Ridgeway inquired about Item #7, and confirmed with Fire & Marine Deputy Chief Melum that a number of beaches throughout the • City already have boats stored year- round. Fire & Marine Deputy Chief Melum explained that there are two types of moorings in the City - offshore and on- shore. He stated that the on -shore moorings provide a post on the Volume 52 - Page 376 • City of Newport Beach City Council Minutes March 8, 1999 beach, to which a boat is connected. He said that this is permitted with the boat owner paying a fee to the City to occupy the space. Also in reference to Item #7, Council Member Debay confirmed with Fire & Marine Deputy Chief Melum that there is a twenty - minute time limit for boats to be docked at City piers. 2. UNDERGROUND UTILITIES IN WEST NEWPORT (PROPOSED UNDERGROUND ASSESSMENT DISTRICT NO. 69). Public Works Director Webb stated that staff is asking for guidance from the City Council as to whether the City should move forward with the assessment district or wait for additional requests from the public asking that it be created. Public Works Director Webb stated that there seems to be a good feel from the public about the district. He stated that if staff is directed to move forward, the next step would be for the City to get formal estimates from Edison and Pacific Bell, and advance the money for the design. Public Works Director Webb stated that the district is a long district, broken up into seven sections. He stated that the most difficult section to obtain approvals for is Section G, which runs along the Ocean Front alley from 34th Street to 23M Street. He stated the difficulty lies with the fact that the area is primarily comprised of rental properties, so that signatures from homeowners are hard to obtain. Public Works Director Webb stated that representatives from the Edison Company were available at the meeting to answer any questions. Mayor O'Neil suggested that Assessment District No. 82 in Corona del Mar also be discussed at the current meeting. Council Member Debay pointed out the before and after pictures provided at the meeting and the impact the undergrounding of utilities will have on the area. She added that undergrounding the utilities will make the area safer during an earthquake due to the liquefaction problem in the area that would cause the overhead wires to fall. In addition to beautification and fire safety, the undergrounding of the utilities would aide the City in complying with ADA (Americans with Disabilities Act) requirements, since it would open up space on the sidewalks. Council Member Debay stated that the City has some responsibility to meet the ADA requirements, explaining why the sidewalk improvements have been included in the assessment district. She is also hoping that funding from other sources will be obtained. Council Member Ridgeway asked Public Works Director Webb if Section G could be pulled out of the district at the last minute if it did get the required number of signatures. Public Works Director Webb stated that it would be • possible, but that it would be better if the City approached the public with a set boundary, even if it meant making Section G its own district. Volume 52 - Page 377 INDEX Assessment District 69 West Newport Underground Utilities (89) City of Newport Beach City Council Minutes March 8, 1999 INDEX • Council Member Ridgeway stated that he understands that Proposition 218 allows for a simple majority to approve a district. Public Works Director Webb agreed and added that an active negative group can just as easily overturn the approval of a district. Council Member Ridgeway confirmed that the votes from Section G would be averaged. in with the entire district, if the current boundaries are used. Mayor O'Neil. added that the City Council could modify the boundaries at a later date. Council Member Glover stated that she understands that the City would not be reimbursed for the cost advancement if the district were not approved. She commended the citizens who have been working on making the district a reality. Council Member Glover asked about the possibility and cost of having the utilities, Citywide, undergrounded. Acting City Manager Danner stated that staff would have to calculate the cost, but he feels that it would be legal. Referencing the time it has taken to pursue Assessment District No. 69, Council Member Glover suggested that if the City were more involved, the process might move along quicker. She stated that she would like to look into this matter further. Council Member Ridgeway stated that the cost to the citizens is really the • bottomline in getting a district approved. He stated that the overall benefit is more obvious and easily accepted, but it is very time - consuming to get people to commit the dollars. Dana Krager, 4831 Lido Sands Drive, provided some history on the assessment district. She stated that the effort to underground the utilities in West Newport has been taking place since 1991. She said that the community would realize an increase in safety, aesthetics, property values, public perception and community pride. She added that West Newport is unique in its diversity, which is one reason the district was divided into seven sections. She said that the district would be one of the largest in the City. She stated that although there have been many changes and obstacles since the initiation of the district, the support for the district remains. She added that the subdivisions and the size of the district reduce the financial liability to the City. Ms. Krager requested the City Council's approval of the assessment district. Carol Stockham, 4912 River Avenue, stated that she agrees with Council Member Debay that the undergrounding would increase the safety in the area. Ms. Stockman read from a letter submitted to the Daily Pilot by Kathleen Cooper. The letter addressed the issue of safety and accessibility in the area, and the fact that the sidewalks in West Newport were grandfathered into current code requirements. Susan Rinek, 5019 Lido Sands, stated that she is in support of • undergrounding the utilities in the area because of the beautification factor. She stated that she feels that West Newport needs to be improved to bring it inline with the rest of the City. She stated that andergrounding the utilities Volume 52 - Page 378 City of Newport Beach City Council Minutes March 8, 1999 is will be a part of this effort. Mayor O'Neil stated that he feels that the City Council believes this is a worthwhile project and that the next steps should be approved. He requested that City Attorney Burnham ask the bond counsel what time frame the City Council has for possibly changing any of the district boundary lines. John Durio, 215 Jo Anne Place, stated that he agrees that the sidewalks in the area are too narrow, and he believes that everyone in the area would be for the undergrounding if the price were right. He stated that since he's been in the area for so long, the assessment currently being proposed would double the taxes he pays each year. Mr. Durio stated that the current situation should never have come about, and that Edison and Comcast should have to contribute to the funding of the district. He stated that he also needs to understand what type of upgrade will be required on his property if the lines are undergrounded. Max Morgan, 129 31st Street, commended those that have assisted with the project. He stated that recently they obtained a list of the current owners in the area. Mr. Morgan stated that he is in Section G and it's difficult to get the support in the area, but that it has improved over time. He wants to see the assessment district move forward. • Martha Durkee, P. O. Box 3353, stated that she feels that people do not know the total cost they will incur. She requested that the cost be thoroughly outlined for the citizens. Public Works Director Webb responded to some of the earlier questions. In reference to Mr. Durio's question, he stated that a permit will be required as part of the new connection. He stated that the Building Department will determine if the wiring in each house is up to current code, but will not require rewiring as long as it is safe. In response to Ms. Durkee's request that the costs be given upfront, Public Works Director Webb stated that an estimate will be provided, but that an exact cost can not be determined until the final engineering plans are finished, bids have been received and the final formation of the district takes place. Council Member Ridgeway stated that citizens in the district do need to understand that there is an additional cost to the assessment district cost, which is the hook -up cost. He stated that this hook -up cost includes undergrounding the wire at the property line to the property and the permit fees required by the City. Motion by Council Member Debav to direct staff to move forward with Assessment District No. 69 between the Santa Ana River and 23�d Street and obtain design costs from the utility companies and bring back to the City • Council for consideration of funding options to advance these costs; review the status of the other assessment districts; and direct staff to put together a Question & Answer sheet to cover general questions to be distributed Volume 52 - Page 379 INDEX • • City of Newport Beach City Council Minutes March 8, 1999 throughout the District. City Attorney Burnham responded to an earlier question by stating that the boundaries of the district can be changed after the resolution of intention is adopted, but that it is more difficult to do so. Public Works Director Webb stated that the status reports of the other assessment districts have been provided, that Dick Hoffstadt was available to answer questions about Assessment District No. 82 and that the Edison representative was available to possibly provide information about the length of time it takes to design a district. Without objection, the motion carried by acclamation. Kim Barone, Regional Manager with Southern California Edison, stated that Southern California Edison is committed to continuing its work with the City and putting together the additional resources needed for the new district. She introduced Larry Jones, Manager of Electric Distribution Group, Al Ohara, Service Planner for the City of Newport Beach, and Chuck McKimmey, Rule 20 Undergrounding Project Management Group. Ms. Barone responded to Mayor O'Neil's question about Assessment District No. 82. She provided a copy of the red line for the design of the project. She said that once the approval for the red line is received from the City, Edison will go forward with the blue line and the final engineering design. Public Works Director Webb added that once Edison has completed their portion of the plans, then the telephone company will move forward with theirs. He said that a joint review of both plans will then follow. Mayor O'Neil confirmed that these steps will take approximately six months to one year, and must be completed before construction can begin. Council Member Debay asked Ms. Barone if outside help could be contracted to keep the pace of the projects moving forward more quickly. Ms. Barone stated that Edison will continue to do all they can to make sure the projects happen as quickly as possible. Ms. Barone stated that each district is unique in its physical characteristics, so that a standardized cost estimate cannot be used. Council Member Debay provided Ms. Barone with some pictures of the area and asked that she respond to Edison's responsibility in the area of ADA requirements. Ms. Barone stated that no streetlights or poles can be put in public right -of -way without City permission. Mayor Pro Tem Thomson asked about the cable company and how the undergrounding occurs. Public Works Director Webb stated that the cable companies are required to underground their facilities at their own expense once the other utilities in the area are undergrounded through the assessment district. He added that all undergrounding would occur at the same time. Volume 52 - Page 380 •li�i Ts11 • • • City of Newport Beach City Council Minutes March 8, 1999 Mayor Pro Tem. Thomson stated that he is waiting for the year 2002 when the franchise agreements with the cable companies expire to make some other changes. Council Member Debay thanked Dana Krager and the others involved for their hard work. 3. TIDELANDS ADMINISTRATION. Fire & Marine Chief Riley stated that the project was begun in 1997 to update the "Patterson Map ", identifying the City's tidelands boundaries. In 1998, staff was directed to prepare a report on how the tidelands were administered. At..the goal setting session on January 30, 1999, key issues were identified. The five issues that would be discussed today included administration, equity, monitoring, current cost recapture and future cost recapture. Fire & Marine Chief Riley referred to the staff report. Fire & Marine Chief Riley stated that Fire & Marine Deputy Chief Melum, Assistant to the City Manager Kiff, Public Works Director Webb and City Attorney Burnham assisted in the preparation of the staff report. Fire & Marine Chief Riley stated that the first issue he wanted to discuss was the issue of equity, which includes the mooring fees, residential fees, current commercial permits and the methodology used for establishing fees and permits. Fire & Marine Chief Riley stated that the second issue to discuss was the administration of commercial activity. He stated that currently there are 66 people with commercial harbor permits. He stated that there are also several tideland lease users, which vary in type. Fire & Marine Chief Riley referred to information provided in the staff report. He stated that staff is looking for direction from the City Council as to whether they want to continue with commercial harbor permits based on uses or migrate towards additional leases. Council Member Ridgeway asked if what other jurisdictions charge and how they administer their programs had been looked at. Fire & Marine Chief Riley stated that a study was done to look at commercial leases versus permit activities and it was found that, on the California coast, Newport Beach was the only coastal tidelands administrator that still uses a commercial permit system. He stated that everywhere else, a lease system is used. He added that they have not done a study on how other jurisdictions factor or design their leases. Council Member Ridgeway asked what other jurisdictions have done and what type of methodology they have used to obtain a rental rate. Fire & Marine Deputy Chief Melum stated that two methods are used: appraisal of the properties and in -house economic analyses. He stated that most are established through appraisal. Council Member Ridgeway asked for further clarification. Fire & Marine Deputy Chief Melum stated the City's charge of twenty -eight cents (28¢) per Volume 52 - Page 381 "kits) 0M Tidelands Administration (51) E City of Newport Beach City Council Minutes March 8, 1999 INDEX square foot is unique, and factors in an adjustment for the City not owning the uplands. He added that other jurisdictions, after the appraisal, use a percentage of gross. Council Member Ridgeway suggested that the City use a percentage of gross also. Fire & Marine Deputy Chief Melum said the City could use a percentage of gross and still stay with a permits system. Council Member Ridgeway stated that he feels that some properties will be difficult to use a percentage of gross, but he doesn't feel that the City should continue using a per square foot fee either if no one else is doing it. Fire & Marine Deputy Chief Melum stated that other jurisdictions can more easily use a percentage of gross because they usually own the uplands. He added that an appraisal could be done that takes this into consideration, as well as the nature of each type of business. In response to Mayor Pro Tem Thomson's question, Fire & Marine Deputy Chief Melum stated that the per square foot fee was set in 1979 at eight cents (8¢) per square foot, adjusted annually for CPI, reappraised in 1989 to twenty -one cents (21¢), and is currently twenty -eight cents (28¢) based on annually adjustments for CPI. Mayor O'Neil asked if a form -type lease could be used for the various types of operations if the City Council decided to direct staff to move from permits to lease arrangements. Fire & Marine Chief Riley stated that a standardized • lease could be formulated, with a variance for the exceptions. He added that there are basically six types of uses, which could be established by appraisal. He suggested that six lease values could be determined, with exceptions handled individually. Council Member Ridgeway stated that Lido Marina Village is an example of a property where the City could be making more revenue if a percentage of gross were used. He added that although there are uplands that the City does not own, the City does own the roads and services leading to those uplands and should receive revenue accordingly. Council Member Glover stated that she had previously asked staff to look at Long Beach and how they structured their leases. She suggested that all of the City's leases should be based on appraisals, whether the City owns the uplands or not. Fire & Marine Chief Riley stated that an appraisal could be done for each individual lease or a blanket -type appraisal could be done to give a broad picture, or a combination of both could be used. Council Member Glover stated that two factors would affect the decision on whether to do an appraisal: longevity and long -term revenue. And, she added that two appraisals may need to be used in some situations. Council Member Ridgeway stated that an appraisal will establish a base rate and the City would add a percentage rental to it. . Mayor Pro Tem Thomson asked the reason for looking at this issue. Fire & Marine Chief Riley stated that the reason was to establish equity, as well as to comply with Council Policy requiring the City to do a blanket appraisal for Volume 52 - Page 382 City of Newport Beach City Council Minutes March 8, 1999 • commercial permit activities every ten years. Additionally, he stated that it was also affected by the City Council's concern over the handling of the Lido Marina Village lease negotiations. Mayor Pro Tern Thomson summarized the reasons by stating that the City's attempt is to get fair value for the various uses, rather than just raising fees as high as allowable. He said he would prefer this to be true. Fire & Marine Chief Riley stated that staff is looking to receive direction from the City Council. Council Member Debay stated that the consideration is also based on the tour boats that utilize private docks. Fire & Marine Chief Riley stated that the issue falls under charter operators' permits and is not a part of the report being reviewed. He stated that it should be added, so that the overall picture can be looked at. Fire & Marine Deputy Chief Melum added that there are two types of permits for the charter operations. The other one being the commercial activities permit which is site specific. He added that some of those permittees might be operating as passenger terminals. Council Member Noyes added that another reason to look at this issue is to incorporate future costs to the City. And, referring to the mooring fees chart in the staff report, he confirmed with Fire & Marine Chief Riley that, although the County only has eighteen moorings in the harbor, they are at a higher amount. • Council Member Noyes asked why the Yacht Basin was not listed as a comparable in the comparison chart on thirty -foot vessel storage in the staff report. Fire & Marine Chief Riley stated that a marina to marina comparison was not done, but that it showed what the tidelands user pays versus what the City receives. Council Member Ridgeway stated that the equity issue is also a budget deficit item issue for the City. He referred to the information in the staff report that indicated that the City spends $'L2 million per year on the tidelands, but receives only $6 million in revenue. Fire & Marine Chief Riley moved on to the next issue, which pertained to how the City monitors tidelands activity. He stated that, historically, staff has taken a fairly low -key approach. He stated, that they have done safety inspections of docks during construction, modification or repair, and inspections on an as- needed or requested basis. He stated that staff is looking for direction from the City Council as to whether a more comprehensive inspection program should be implemented. Council Member Ridgeway suggested that if the City went to a lease program, an audit could be done which would evaluate the operations. Fire & Marine Chief Riley stated that the final. issue before the Council at the current meeting was the issue of future costs. He referred to the staff • report, which covered what the potential costs would be. He stated that these cost estimates should be considered when providing direction. Volume 52 - Page 383 INDEX • City of Newport Beach City Council Minutes March 8, 1999 INDEX Council Member Ridgeway stated that he disagreed with most of the recommendations in the staff report. Mark Kehke, Balboa Island resident, expressed his concern over the on- shore moorings on Balboa Island. He noted that the waiting list for these moorings is very long, but that some people expedite the process by buying a boat already moored and transferring the mooring rights over to themselves. Mr. Kehke suggested that the fees could be higher than they currently are. Council Member Ridgeway also suggested that maybe a transfer fee could be charged. Council Member Ridgeway stated that throughout the meeting, direction has been given to the Fire & Marine Department. He stated that, specifically, they should look more closely to moving towards commercial leases, and at a methodology for the commercial permits, which should also begin evolving into leases. He stated that he likes the 25 -year maximum suggested in the staff report for tidelands lease terms. Mayor O'Neil stated that the City should look at appraising the fees. He suggested that as the appraisals go forward, he thinks the City Council should have input on which appraisers are used. Mayor O'Neil agreed with Council Member Ridgeway that more leases should be used and less permits. He also suggested that the City Attorney be instructed to work with staff on • the various forms of leases. Additionally, he suggested that staff attempt to have the commercial operators share in the cost of the appraisals. Mayor O'Neil agreed that leases might enable the City to better control compliance and monitoring issues. He agreed that the City is not attempting to raise revenue, but only to become more fair and equitable. He added that the City, as the trustees of the tidelands, has the responsibility to receive fair market value for allowing the public to use the tidelands. He agreed that the public should not be allowed to trade public tidelands to their advantage. He said the users of the water areas should pay for the increased costs that the City will face in the future. Council Member Glover asked if the permit areas have been identified, and if staff could recommend which ones should be changed to leases. Fire & Marine Chief Riley stated that when staff comes back to the City Council for concurrence on the appropriate appraisers, that possibly staff could also provide a methodology for categorization of leases. Mayor Pro Tem. Thomson suggested that more information should be provided to the City Council before specific direction on policy is given to staff. City Attorney Burnham stated that the City Council is not required to make a motion at the current meeting, and that staff has the direction it needs. He stated that staff could gather more information, respond to some of the issues discussed and that a formal decision could be made later. • Mayor O'Neil stated that the methodology used to determine the value of the tidelands is very important, and needs to be reviewed. He feels that the Volume 52 - Page 384 City of Newport Beach City Council Minutes March 8, 1999 • tidelands have great value in Mayor Pro Tern Thomson, referring to the discrepancy in revenue and costs, stated that in addition to looking at increasing revenues, the City should also look at decreasing costs. City Attorney Burnham stated that his understanding is that the City Council also wants to look at leases in terms of the way they can be used to achieve water quality objectives and possibly controlling water uses. Mayor Pro Tem Thomson emphasized that the attitude should be to achieve the highest water quality possible. PUBLIC COMMENTS There were no public comments at this time. Council Member Debay thanked the City Council for their assistance earlier in the meeting in moving forward on the undergrounding of utilities in West Newport forward. ADJOURNMENT - 5:55 p.m. ♦ xma, r� ,t *ax * * *a,xr *r *t,t *xa,r,� «t * «« • The agenda for the Study Session was posted on March 3, 1999, at 3:30 p.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. The revised agenda for the Study Session was posted on March 5, 1999, at 3:20 p.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. • Recording Sec try r Mayor Volume 52 - Page 385 1l0 U?RV