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HomeMy WebLinkAbout02/22/2000 - Study Session0 CITY OF NEWPORT BEACH City Council Minutes Study Session February 22, 2000 - 4:00 p.m. ROLL CALL Present: Glover, Adams, Debay, Ridgeway, O'Neil (arrived at 4:45 p.m.), Mayor Noyes Absent: Thomson (excused) CURRENT BUSINESS 1. CLARIFICATION OF ITEMS ON THE CONSENT CALENDAR. No items were discussed. 2. BALBOA YACHT BASIN REQUEST FOR PROPOSALS AND CITY MANAGER'S RECOMMENDATION TO MAINTAIN CITY MANAGEMENT. City Manager Bludau reported that this was discussed at a previous study session and, according to Council Policy, any management offer for City property needs to go through a request for proposal (RFP) process. He indicated that he and Chief Riley looked at the proposals and recommend that Council reject all proposals and continue having the City operate the Balboa Yacht Basin using City staff. He noted that management would be left for the City Manager to continue as it is if no action were taken tonight. If comparing the BellPort Group and City management, he indicated that the benefits are close. He stated that he could see where using BellPort could mean a little higher level of service, but pointed out that the tenants have let the City know that they are very satisfied with the current operation. Mr. Bludau indicated that there will be rate increases in the future regardless of who manages the marina; however, if a private entity is managing the marina, the users may think that the rate increases occurred sooner than expected. He stated that some of the proposals offered some enhancements to services, but they did not feel any of the proposals justified a change in management at this time. Council Member Glover asked the legalities of asking for RFPs when the City is one of the bidders. Mr. Bludau stated that the City is not really bidding against anyone else but wanted to come up with a comparison that showed the City's operation. Council Member Glover noted that the City had a philosophy at one point to outsource some of its functions. Mayor Pro Tem Adams stated that the City received a petition with over 100 signatures and asked if any of the signers reviewed the proposals. Mr. Bludau indicated that the proposals were available for review in the City • Clerk's office and pointed out that the petitions were signed because they did not want the City to accept BellPort's proposal. Mayor Pro Tern Adams indicated that having all those petitions is a major factor in his decision, but Volume 53 - Page 200 INDEX Balboa Yacht Basin (51) is City of Newport Beach Study Session Minutes February 22, 2000 INDEX believed that the tenants should respond after they understand all the proposals. In response to Council's questions, City Attorney Burnham indicated that he is not sure how the RFP was drafted or whether it contemplated responses by City Boards or Commissions. However, he does not believe there is anything in the policy or the municipal code that prohibits a commission from asking staff to prepare a response to a proposal. Using Marina Park as an example, Assistant City Manager Wood stated that the direction was to include all the current users of the property when Council approved the distribution of an RFP. The proposal was prepared using some staff time and by retaining a landscape architect to do a quick plan. Council Member Glover stated that she did not know that the Parks, Beaches and Recreation Commission asked staff to prepare the proposal. Council Member Debay believed that the petitioners feared that a private company would come into the marina, clean up the area, and then increase the rates. Mr. Bludau reiterated that the tenants are satisfied with the current operation and added that there are no vacancies in the marina. Council Member Ridgeway stated that he talked with a number of people in the marina and believed that "if it's not broken, don't fix it." He indicated that he likes privatization if needed; however, he is not sure if third party management is really privatization. He expressed the opinion that the real • issue is that this is the only spot where the City really has a presence on the Bay and that it will harm the City in the long run if this is taken away. He pleaded to Council to maintain this presence and noted that the City has maintained a fairly consistent operating expense and has a sinking fund for capital improvements. Peter Ueberroth, BellPort Group, believed that the bid process was fair and thanked the City for choosing them as one of the top bidders. He stated that the City is in a bit of an awkward position when it has its own people judging how well it and outsiders do. He expressed the opinion that government should always use private sector management and that the City's accounting is not accurate. He stated that he believes that the marina tenants are thrilled with the current service because they are paying 15 percent less than similar facilities, which equates to about $200,000 to $250,000 of revenue to the City. Mr. Ueberroth also believed that the slips can be used while vacant (with renters permission) to encourage more tourism to the City and noted that BellPort has a program to attract visiting boaters. He added that they are best equipped to deal with all the environmental issues since this may be complicated for the City due to its future financial condition. Regarding the petitions, he believed that none of the signers have looked at their proposal. Council Member Ridgeway stated that the person who distributed the petition does have a copy of the proposal. He added that the tenants do know that their rent is low and are actually expecting a rent increase. • Regarding the accounting, he stated that there are no hidden costs and that staff probably added more into the proposal than needed. Regarding the environment, he indicated that he is aware of what is happening to the water and agreed that BellPort is at the cutting edge; however, he pointed Volume 53 - Page 201 City of Newport Beach Study Session Minutes February 22, 2000 INDEX • out that BellPort has received reminders from the City of at some of the facilities they manage. water quality Ron Bauer, representing Balboa Yacht Basin tenants, stated that he is a 15 year tenant, has been a certified property manager, past president of the Institute of Real Estate Management, and just concluded a 32 year career in commercial real estate management. He stated that he has not read the proposals but believed that owners outsource management for several reasons. One reason is that the owner feels it does not have the expertise; however, he believes this is not the City's case and noted that it has managed the Basin for 17 years and has over 100 signatures of support. He stated that another reason is that the owner does not have the personnel, but again noted that this is not the case for the City. Mr. Bauer reported that the current manager has been in place for 12 years and that the City employs part -time off - season lifeguards to do maintenance during the winter. Finally, the last reason is that the owner does not have knowledge of the market. He indicated that the City is familiar with the harbor and its competition, been responsive to changes in market conditions, and conducted rent surveys. He noted that, in 1995, he proposed that a CPI increase be included with leases to eliminate the need for large increases when he spoke at the Council meeting when a 21 percent rent increase was proposed. Mr. Bauer pointed out that there is a clause in the documents that says that the City shall be competitive, but not lead the market. He believed that the • City has done a nice job and wants the City to continue as manager of the Balboa Yacht Basin. Mayor Pro Tem Adams asked what the tenants' concerns are if the City outsources this function. Mr. Bauer stated that he talked with people who have been under the BellPort Group's management and that they indicated that BellPort cuts services and increases prices. Mayor Pro Tern Adams believed that it is not right to send around petitions to oppose a proposal that they have not fully investigated. Mr. Bauer indicated that the proposals were not available to him, pointing out that the RFP states that they would not be available to the public until after a certain date. Mr. Bludau believed that the proposals were public information for anyone who wanted to see them. City Clerk Harkless clarified that the proposals were not available in her office until they were part of the agenda packet and did not have knowledge of their availability prior to that. Council Member Glover believed it was misleading to imply that BellPort does not have experience, noting that they have been in business for about 35 years. She pointed out that the recommendation requests a Council action, but indicated that they cannot take any action during study sessions. Mr. Bludau indicated that, if Council wanted, they can give direction to place this on a regular meeting agenda. In light of her concerns about future revenue sources, Council Member Glover stated that it may be hypocritical of her to not look at the possibility • of outsourcing this function, especially since it may increase revenue. She pointed out that the Basin would still be a City marina and would still maintain a City presence. She stated that she likes the concept of having an area where the City could market to have visitors enter via the marina and Volume 53 - Page 202 City of Newport Beach Study Session Minutes February 22, 2000 • have a manager who could INDEX Council Member Ridgeway stated that he has been working with the Harbor Committee for a year and that they have been looking at visitor- serving dock space. However, the Committee has come to the conclusion at this time that the harbor is generally not organized for it but the yacht clubs are. That issue was deferred to the yacht clubs and/or the Harbor Patrol. Mayor Pro Tem Adams requested that this item be placed on an agenda because he would like to see the specifics of the two proposals made readily available to the tenants so that they can make an informed decision about the options and to allow BellPort the opportunity to address the tenants' concerns. He believed that the concerns can be addressed without increased costs through the contract. He stated that Newport Beach is a City, not a marina operator, and indicated that he is not sold one way or the other but has not heard enough to make a decision. Mayor Noyes agreed with Mayor Pro Tem Adams and stated that he believes the City may be moving too fast. He suggested conducting an independent review in order to avoid any appearance of inpropriety since the City is analyzing its own proposal. Council Member Glover believed that the City should analyze this from a business viewpoint, stating that some of the numbers do not add up with the history of the marina. She indicated that the City may need to look at all its • holdings if an opportunity to increase revenue arises. Mayor Pro Tem Adams asked if outsourcing this would reduce the City's liability exposure. Mr. Burnham indicated that the City would normally require indemnity from the operator, but noted that there has not been any significant liability exposure as a result of the marina operations. Noting that he owns shopping centers, Council Member Ridgeway indicated that he is the one who reviews the proposals when he has people competitively bidding for management and that he usually has cross indemnities. He indemnifies the property manager for issues within the operation and they indemnify him for any negligence that they may cause. He reminded Council that the City is the owner and that he is not sure if a third party should come in and analyze the proposals. He indicated that he receives bids, reviews the bids, and picks the best one which is usually the low bidder. He stated that it is ironic that the low bidder is the City, but reiterated that rent should be raised. He asked if Council wants to put the City in the same pool as The Irvine Company's leases because that is what this would do. Mayor Pro Tem Adams believed that bringing this forward at a public hearing would be adequate. He indicated that Bel]Port has the City's proposal to compare against and has time to address any concerns. Council Member Ridgeway stated that it is unfair to take proposals from a sealed bid • situation and now allow them to play against the other. Referencing the matrix, Mr. Bludau reported that the net revenue between BellPort and the City is within $10,000 and reiterated that the City Volume 53 - Page 203 u is City of Newport Beach Study Session Minutes February 22, 2000 ultimately sets the rates even if BellPort manages the marina. Council Member Glover asked that a ten year history be included in the staff report. 3. CIRCULATION STUDY FOR MERGER OF NEWPORT BOULEVARD/BALBOA BOULEVARD. Mayor Pro Tem Adams recused himself, noting that his company prepared the study. For the record, he reported that his company was awarded the study prior to him being elected onto Council. Council Member O'Neil arrived at 4:45 p.m. Motion by Council Member Ridaewav to direct staff to proceed with the preparation of plans, specifications, and engineer's final estimate for completion of traffic circulation, safety, and access improvements in the Mix Master area in general conformance with Alternative H (Modified Existing). Council Member Ridgeway reported that the consultant has followed the advice of the citizens. He stated that he liked Alternative H which constructs a two -way street on 21st Street and widens Newport Boulevard between 26th and 22nd Streets, and has minimal reduction in parking. He indicated that the Ad Hoc Committee to Promote the Revitalization of the Balboa Peninsula (PROP) reviewed it and members of the Peninsula Point Association and Central Newport Beach Community Association concurred with the alternative. Noting that she is a member of the PROP Committee, Council Member Debay stated that she has seen the key issues and feels comfortable with the alternative. Mayor Noyes asked why this item was not placed on the regular agenda, noting that Council should not be taking action at study sessions. City Manager Bludau stated that it was believed that Council would want to discuss it first and not take that much time at a regular meeting. Council Member Ridgeway believed that this could be placed on the Consent Calendar at this point. Mayor Noyes indicated that a vote will not be taken tonight. Robert Rubian, 2200 Newport Boulevard, stated that many meetings were conducted and expressed the opinion that Alternative H is less disruptive. He believed that the alternative is the most efficient with regard to traffic flow, parking, cost, and right -of -way to all businesses. Senior Civil Engineer Brine reported that five public meetings were held during the development of the study. Tijana Hamilton, Parsons Transportation Group, reported that Alternative • H has four elements: provides access from southbound Newport Boulevard to MacFadden Squareibeach parking; provides enhanced access to the bayside businesses by pulling back the curb along Newport Boulevard; enhances the visibility of the pedestrian crossing on Newport Boulevard at Volume 53 - Page 204 INDEX Merger of Newport Blvd. & Balboa Blvd. (85) City of Newport Beach Study Session Minutes February 22, 2000 • 23M Street; and enhances and consolidates signage to provide better comprehensive signage for visitors and encourage people to use Balboa Boulevard outbound during peak periods. In response to Council Member Glover's questions, Ms. Hamilton indicated that they will not be developing the roundabout because its location focused access away from the area, was geometrically hard to design, impacted parking to Woody's Wharf and Hooters, and took away 40 parking spaces. She stated that Alternative H (Modified Existing Alternative) is enhancement to the existing operation at the Balboa Boulevard /Newport Boulevard intersection to effectuate better traffic flow and enhance access to the area while minimizing impacts to parking, as well as disruption during implementation. She reported that this alternative would cost about $395,000 and would give the City traffic signal modifications that coincide with the reconfiguration into a two -way area, reconstruction of the roadway, enhanced lighting and pedestrian signing at 23rd Street, and additional signage and street lighting to increase visitor comprehension and access. Public Works Director Webb reported that a majority of the funding would come from the Gas Tax Fund and the rest from the General Fund. He indicated that the improvements in front of Hooters and Woody's Wharf will be postponed until the undergrounding district is completed. He explained that, at that time, the City already programmed a reconstruction of the street and overlays that can take the widening into consideration. He stated that this may even lower the total cost of the project. He reported that the • first phase would be traffic signal work and changing the roadway into the two -way section at a cost of about $140,000. Council Member Glover asked the members of the PROP Committee what this improvement will do for the peninsula. Council Member Ridgeway stated that this has been an ongoing, frustrating issue for years. He pointed out that there was a push by a number of people for a redesign of the Mix Master and that the City spent $185,000 for Parsons to study the area and come up with a recommendation. He believed that Alternative H is a very reasonable plan for an issue that has been in conflict. Additionally, for the first time, the area is looking at a balance between pedestrians, vehicular traffic, residents, and tourists. He believed that this and Agenda Item No. 26 (Phasing and Estimates for the Balboa Village Pedestrian and Streetscape Improvements Plan and the Balboa Pier Parking Lot Improvements) is a unanimous consensus and noted that the citizens have worked hard with the consultants to come to a nice balance. Mayor Noyes added that Alternative H will also improve traffic flow and make the area safer. He stated that it is a good plan that works for a reasonable price. Mr. Webb stated that staff will get whatever proposals are necessary to prepare plans and bring them back to Council at a regular meeting if Council infers that they want Alternative H to proceed. Mayor Noyes indicated that Mr. Webb's statement was reasonable. 4. OVERVIEW OF TRAFFIC SIGNALS. • Council Member Debay stated that she and Mayor Pro Tem Adams met with the City Manager to talk about traffic on Pacific Coast Highway (PCH). She reported that CalTrans controls PCH and indicated that a motorist can get Volume 53 - Page 205 INDEX Traffic Signals (85) City of Newport Beach Study Session Minutes February 22, 2000 • stopped at a number of signals trying to drive on PCH. She asked how the synchronization works when there are pedestrians on the corner and if the lights are ever overridden to keep the majority of the traffic moving. She requested that the City ask CalTrans to check the lights to ensure that they are working properly. Transportation and Development Services Manager Edmonston stated that traffic counts are the first thing they look at in order find out how much traffic is occurring and the hours of traffic. From the data, the number of lanes needed and signal timing is determined. He reported that the two busiest intersections in the City are at PCH /Jamboree and PCH /Superior; and the busiest left turn intersections are at PCH /Jamboree and Bristol/ Jamboree. Mr. Edmonston clarified for Mayor Pro Tem Adams that CalTrans changed the striping for the free right turn at PCH /Jamboree because they felt their striping was safer. He added that CalTrans also took down the sign that informed drivers that they do not need to stop to make the right. He noted that CalTrans rotates its staff frequently to where the City is typically dealing with people that only have one or two years experience. In response to Council Member Ridgeway's question, Mayor Pro Tern Adams stated that he designed the PCH /Jamboree intersection and that a grade separation was considered at that time. Mr. Edmonston indicated that the is City pitched that idea to CalTrans on at least two different occasions, but they do not seem interested in looking at the impacts. Mayor Pro Tern Adams reminded Council that the intersection was designed to have a dual right turn and that a curb return was installed so that right turns could take place on the outside. He indicated that this would be unconventional but may be something the City should look at because his company knew 15 years ago that a single free right turn would not be enough over time. Mr. Edmonston noted that about 1,500 cars drive on that turn during peak hours when the capacity of the lane is about 1,800. He reported that the long range projection was actually over 1,800 and that a safety valve was included in the design as an option if the capacity was exceeded. Mr. Edmonston stated that the highest amount of total traffic approaching an intersection on one leg is at Superior/PCH in the morning from the Huntington Beach direction. He indicated that about 30 intersections a year are counted for purposes of the traffic phasing ordinance. Mr. Edmonston discussed designing and studying new signals. He also described a signal display, signal control mechanism, opticom detector, and the red LED that assists the Police Department in enforcing red light violations. Regarding the opticom detector, Mr. Edmonston indicated that a rapidly flashing strobe light is used and built into the Fire Department's light bar. The signal senses the frequency of the strobe light and tells the controller • that there is an emergency vehicle approaching. He clarified that only the Fire Department has these and noted that the CalTrans signal personnel allowed the City to put the detectors on the State highway signals. He added that CalTrans does not maintain the detectors but will meet the City Volume 53 - Page 206 INDEX • City of Newport Beach Study Session Minutes February 22, 2000 11h111a.4 and its maintenance company at the location to help them solve any problems. Regarding signal timing, Mr. Edmonston stated that the City develops the timing for individual intersections and that it is influenced by the width of the street, number of phases in a signal, and the volume of traffic per lane. Once the individual timing is developed, adjacent signals are then coordinated. He reported that the cycles are typically between SO and 110 seconds. Mr. Edmonston stated that the City operates the coordination on Jamboree Road, Irvine Avenue, Superior Avenue, Balboa Boulevard, Main and Palm Streets, and 21st and 23 =d Street. He indicated that the City does not have coordination on San Joaquin Hills Road, but can change some of its parameters with the City's master computer. He explained how PCH is coordinated, noting that it is harder to hold the traffic together when signals are further apart. Mr. Edmonston demonstrated how signals are coordinated and how pedestrians can affect the timing of the signals. Council Member Glover asked if a pedestrian overhead bridge on PCH at Riverside and Tustin would help the intersections. Mr. Edmonston stated that he cannot answer that at this time, but indicated that there are pedestrians at those intersections at almost every cycle during much of the day. He pointed out that the difficulty with pedestrian overcrossings is getting people to use them. • Mr. Edmonston reported that, during the peak hours on Jamboree, traffic is fairly even in either direction but that the timing will favor the traffic in the heavier direction. He indicated that adding a signal to a group can make a difference on how a traveler progresses up and down the street. He believed that the traffic study should be reviewed every two or three years to get the most out of the system, but noted that it is a fairly intensive operation in which the City has received OCTA grants and hired a consultant in the past. He stated that they asked CalTrans for their timing patterns and when they were last updated but it did not arrive by this afternoon. Mayor Noyes stated that the Seven Minute Survey revealed that citizens thought that PCH /Jamboree and PCH/Dover were the worst intersections. Mayor Pro Tem Adams believed that most of the people think PCH /Jamboree is bad largely because of the right turn. Mayor Noyes asked why PCH /Jamboree has become the most dangerous intersection. Mr. Edmonston indicated that it has that designation probably because of the total number of accidents that occur at that intersection in relation to the amount of traffic. He reported that the wide nature of the intersection has led to it having special timing and an "all red period" in which all the lights are simultaneously red to help traffic clear out of the intersection. He added that the all red period following the triple left turn is five seconds. Mr. Edmonston stated that they look at the police accident statistics for the ten highest locations on the arterial streets and then the City field reviews those locations to identify deficiencies and how to help • them. Public Works Director Webb offered Council an opportunity to look at the traffic controller in the Public Works Department that is tied into the City's Volume 53 - Page 207 • 0 City of Newport Beach Study Session Minutes February 22, 2000 signals. He indicated that Council will be able to see each City - controlled intersection and how adjustments are made. Mayor Pro Tem Adams believed that the timing studies need updating to improve traffic flow. He indicated that the City is under a lot of criticism regarding traffic and believed that a part of the reason for the criticism is that the system is not optimized. In response to Mayor Pro Tem Adams' question regarding double- cycling Jamboree Road, Mr. Edmonston indicated that they have looked at doing this at some of the smaller intersections, like Bison. Mayor Pro Tem Adams expressed concern relative to the worsening of progression on Jamboree over the last six months. Mr. Edmonston stated that, in conjunction with the free right turn lane at Eastbluff and Jamboree, the contractor cut some of the loops which caused the signal to operate at less than an optimum level. He reported that the traffic system is probably due for a reexamination even though it monitors City signals and has reporting capabilities. In response to Council Member Glover's questions, Mr. Edmonston reported that the State highways in the City include Coast Highway, Newport Boulevard from Finley to the Costa Mesa limit, and Bristol Street and Bristol Street North. He indicated that CalTrans is interested in relinquishing Bristol Streets and believed that the area is one where the State has spent a lot of time and has periodically updated the signals. Mayor Noyes stated that it sounds like the City is wanting to update the traffic study and get information from CalTrans. He emphasized that the City is trying to improve traffic flow without building a lot of hardscape. PUBLIC COMMENTS —None. ADJOURNMENT — 6:00 p.m. The agenda for the Study Session was posted on February 16, 2000, at 3:15 p.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. ' -� i pill Volume 53 - Page 208 INDEX