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HomeMy WebLinkAbout03/14/2000 - Regular Meeting0 CITY OF NEWPORT BEACH City Council Minutes Regular Meeting March 14, 2000 - 7:00 p.m. INDEX STUDY SESSION - 4:00 p.m. [Refer to separate minutes] CLOSED SESSION - 6:05 p.m CLOSED SESSION REPORT PRESENTED - None. RECESSED AND RECONVENED AT 7:25 P.M. FOR REGULAR MEETING ROLL CALL Present: Thomson, Glover, Adams, Debay, Ridgeway, O'Neil, Mayor Noyes Absent: None Pledge of Allegiance - Council Member Thomson. Invocation by Rev. Deacon Kathleen Adams, St. James Episcopal Church. • Proclamation recognizing the Toshiba Computer Systems Group for sponsorship of the Toshiba Senior Classic Golf Tournament. Hank Adler, Jake Rohrer, and Jeff Purser thanked the City on behalf of Toshiba and the 1,200 volunteers. Mr. Adler reported that the event raised $1 million for Hoag Hospital. Council Member O'Neil thanked them for organizing this tournament each year and emphasized that the event brings publicity and notoriety to the City. Proclamation recognizing Leigh and Lucy Steinberg and the volunteers of Spirit Run. Mayor Noyes had all the volunteers and children introduce themselves. Council Member O'Neil reported that the Spirit Run was named this year after the Steinbergs who were the principal sponsors. He noted that Leigh was the keynote speaker at the Mayor's Dinner this year and recognized Leigh and Lucy for the charitable work they do in the City. Nadine Turner announced that they are ready to do the 18th Annual Spirit Run next year and hoped that everyone will join them. She stated that she appreciates all the community support they receive and announced that Newport Coast Elementary School will be on board next year as well. Oral report from Aviation Committee. Robert Shepherd, Aviation Committee Member, stated that Courtney Wiercioch of the County Board of Supervisors hired P & D Consultants of Orange to complete an Environmental Impact Report (EIR 573) concerning El Toro; and P & D Consultants • hired K & M Consultants from Washington to do the trip analysis and Jefferson Samuelson of Colorado to do the FAR Part 121 Analysis. Both the analyses needs to be included in the EIR in order for the FAA to make a determination on whether El Toro is safe. Volume 53 - Page 240 City of Newport Beach City Council Minutes March 14, 2000 INDEX • Regarding Runways 7 and 34, Mr. Shepherd stated that he spent time at P & D and they assured him that all FAA design guidelines and safety standards are met at El Toro. He indicated that he also spoke to a gentleman who is probably the foremost authority on aircraft performance who stated that El Toro is not a perfect airport but that it is above average in airport safety. Further, the worst day at El Toro is better than the best day at John Wayne Airport (JWA). Mr. Sheppard stated that he has 35 years flying experience as an airline pilot and 10 years flying Boeing 737s out of JWA. He questioned why John Russell, Airline Pilots Association Western Regional Safety Chairman, would not recommend takeoffs on Runways 7 and 34 (in his letter to the Board of Supervisors and Ms. Wiercioch), pointing out that the Airline Pilots Association has no in -house aircraft performance engineering department. He believed that Mr. Russell has been influenced by hundreds of letters and pilots from South County. He reported that EIR 573 studied Runways 7 and 34 with a maximum 4 knots of tailwind on Runway 7 and a maximum 7 knots of tailwind on Runway 34, and determined that they are safe under those scenarios and would be operational 96 percent of the time. He stated that Mr. Russell believes that Runway 7 would be unsafe but does not substantiate his reason. Regarding Mr. Russell's statement that certain takeoffs from Runway 34 will not clear Loma Ridge, Mr. Sheppard stated that pilots could turn away from the ridge or lighten the load to avoid hitting it. Mr. Sheppard expressed the opinion that Mr. Russell's comments are argumentative and seem to be influenced by another agenda. He reiterated that every scenario can be compensated by adjusting the weight. • CITY COUNCIL ANNOUNCEMENTS OR MATTERS WHICH COUNCIL MEMBERS WOULD LIKE PLACED ON A FUTURE AGENDA FOR DISCUSSION. ACTION OR REPORT (NON- DISCUSSION ITEM): • Council Member Debay requested an update regarding the oil spill allocation be brought back at a future meeting. • Mayor Pro Tem Adams announced that the Friends of Harbors, Beaches and Parks provided Council with invitations to the Orange Coast River Park Concept Plan unveiling on Thursday, March 23, between 7:00 to 9:30 p.m. at the Costa Mesa Community Center (1845 Park Avenue). He invited everyone to attend. • Council Member Glover requested a report relative to how the City can place a measure on the November ballot that would make the Greenlight initiative inapplicable in certain areas of the City to protect them. • Council Member Thomson reported that be is a member of the Orange County Vector Control Committee and cautioned everyone that fire ants are currently in three areas of the City. He reported that the fire ants live in clay -like ground and not sand. If anyone comes in contact with the fire ants, he advised them to call Vector Control or Deputy City Manager Dave Kiff. • Mayor Noyes announced that the Community Emergency Response Team (CERT) is looking for participants from Balboa and Balboa Island for classes that • begin on April 13. Those interested can contact Donna Boston at 644 -3109 for more information. Volume 53 - Page 241 • J City of Newport Beach City Council Minutes March 14, 2000 READING OF MINUTES /ORDINANCES AND RESOLUTIONS 1. MINUTES OF THE ADJOURNED REGULAR AND REGULAR MEETING OF FEBRUARY 22, 2000. Waive reading of subject minutes, approve as written and order filed. 2. READING OF ORDINANCES AND full of all ordinances and resolutions Clerk to read by title only. RESOLUTIONS FOR ADOPTION RESOLUTIONS. Waive reading in under consideration, and direct City 3. ADOPT RESOLUTION NO. 2000 -22 FOR ONE -HOUR PARKING IN FRONT OF NEWPORT ELEMENTARY SCHOOL. Adopt a resolution establishing a one -hour time limit from 9:00 a.m. to 5:00 p.m. on school days for parking along the south curb of Balboa Boulevard between 13th and 14th Streets. 4. ROLLERSKATING RESTRICTIONS AT THE ARCHES INTERCHANGE. Adopt Resolution No. 2000 -23 prohibiting rollerskating on certain streets and sidewalks; and direct staff to contact Caltrans to obtain authorization to install the appropriate signs on State property. 5. RESOLUTION OF SUPPORT FOR THE PACIFIC COAST TRIATHLON - 2000. Adopt Resolution No. 2000 -24 supporting the event to be held on July 23, 2000. 6. WATER QUALITY EDUCATION PLAN FOR NEWPORT -MESA STUDENTS. Adopt Resolution No. 2000 -25 relating to a Water Quality Education Plan for 5th grade students in the Newport -Mesa Unified School District. 7. ORDINANCE DELETING CONSTRUCTION SITE CLEANUP DEPOSIT SCHEDULE FROM CHAPTER 15.60 OF THE NEWPORT BEACH MUNICIPAL CODE. Introduce Ordinance No. 2000 -6 approving amendments to Sections 15.60.010 and 15.60.020 of the NBMC deleting schedules of construction site cleanup deposit amounts and make reference to schedules adopted by resolution of City Council and pass to second reading on March 28, 2000. 8. Removed at the request of Council Member Ridgeway. CONTRACTS AND AGREEMENTS 9. IRVINE AVENUE STREET RECONSTRUCTION (C -3204) - • COMPLETION AND ACCEPTANCE. 1) Accept the work; 2) authorize the City Clerk to file a Notice of Completion; 3) authorize the City Clerk to release the Labor and Materials bond 35 days after the Notice of Completion has been recorded in accordance with applicable portions of the Civil Code; Volume 53 - Page 242 INDEX Res 2000 -22 One -Hour Parking /Newport Elementary School(85) Res 2000 -23 Rollerskating Restrictions (85) Res 2000 -24 Pacific Coast Triathlon (62) Res 2000 -25 Water Quality Education Plan (51) Ord 2000 -6 Construction Site Cleanup (26) C -3204 Irvine Avenue Street Reconstruction (38) City of Newport Beach City Council Minutes March 14, 2000 INDEX Volume 53 -Page 243 and 4) release the Faithful Performance Bond six (6) months after Council acceptance. 10. AMENDMENT NO. 2 TO ORANGE COUNTY TRANSPORTATION C-3051 AUTHORITY (OCTA) MASTER FUNDING AGREEMENT. Approve OCTA Master Amendment No. 2 to Cooperative Agreement No. C-95-985 between the Funding OCTA and the City of Newport Beach. (38) 11. MACARTHUR BOULEVARD/BIG CANYON SOUND WALL C -2825(L) AGREEMENT. 1) Authorize the Mayor and the City Clerk to execute a BA -046 revised Cooperative Agreement with the Big Canyon Community MacArthur Associations and the Big Canyon Country Club that provides for cost sharing Boulevard/ to construct two sections of wall along a portion of the westerly side of Big Canyon MacArthur Boulevard; 2) authorize the City Manager to negotiate and Sound Wall execute a Joint Use Agreement with the Southern California Edison (38140) Company (SCE) across two sections of sidewalk area adjacent to the locations where the walls will be constructed along the westerly side of MacArthur Boulevard; and 3) approve a budget amendment (BA -046) appropriating $33,500 from the unappropriated surplus in the CIOSA Loan Fund to the MacArthur Boulevard Widening Account No. 7432-C5100066. Council Member Thomson abstained from voting on this item. 12. Removed at the request of Council Member Debay. 13, BONITA CANYON SPORTS PARK (C-3270) - APPROVAL TO C -3270B ADVERTISE AND NEGATIVE DECLARATION APPROVAL. Bonita Canyon 1) Approve the plans and specifications; 2) authorize staff to advertise for Sports Park bids for the construction of the project; and 3) approve Mitigated Negative (38/62) Declaration. 14. APPROVAL OF PROFESSIONAL SERVICE AGREEMENTS FOR C -3285(A) ZONE III AND ZONE IV WATER PUMPING STATIONS. Authorize the C -3285(B) Mayor and the City Clerk to execute a Professional Services Agreement with Zone III and IV John Powell and Associates for a fee of $18,949 and with Mark Balan & Water Pumping Associates for a fee of $27,944. Stations (38) 15. AUTHORIZATION TO TRANSFER THE ACUTELY HAZARDOUS C-2531 MATERIALS RISK MANAGEMENT PROGRAM TO THE ORANGE Hazardous COUNTY HEALTH CARE AGENCY AS PART OF A CERTIFIED Materials Risk UNIFIED PROGRAM AGENCY. Amend the contract with the Orange Management County Health Care Agency to transfer responsibility for the risk Program (38) management program to the County's Certified Unified Program Agency. 16. CITY MANAGER'S AMENDED EMPLOYMENT AGREEMENT. Adopt C-3262 the three recommended changes to the City Manager's Employment City Manager's Agreement. Agreement (38) MISCELLANEOUS ACTIONS 17, PLANNING COMMISSION AGENDA FOR MARCH 9, 2000. Receive and file. Planning (68) Volume 53 -Page 243 City of Newport Beach City Council Minutes March 14, 2000 • 18. NOMINATION FROM ECONOMIC DEVELOPMENT COMMITTEE TO FILL EDC VACANCY. Confirm appointment of B.J. Johnson to fill vacancy as the Corona del Mar Chamber of Commerce representative to the Economic Development Committee. 19. BALBOA VILLAGE BUSINESS IMPROVEMENT DISTRICT RENEWAL, ANNUAL REPORT FOR 2000 -2001 FISCAL YEAR AND ADOPTION OF RESOLUTION OF INTENTION TO LEVY FOR 2000- 2001 FISCAL YEAR. 1) Approve the Balboa Village Business Improvement District 2000 -2001 Annual Report; and 2) adopt Resolution of Intention No. 2000 -26 to Levy and set public hearing for March 28, 2000. 20. DONATION OF SIGNS - NEWPORT ELEMENTARY SCHOOL. 1) Accept the donation of eight signs from the Sons of the American Legion for installation by City forces at Newport Elementary School; and 2) direct staff to convert existing school signage to the new color signs at the time replacement is required. 21. REQUEST FOR ASSISTANCE FROM NEWPORT BEACH FILM FESTIVAL. Allocate $30,000 from Economic Development capital account to assist with costs of all Newport Beach theaters. 22. Removed at the request of Mayor Pro Tern Adams. 23. BUDGET AMENDMENT FOR REFORESTATION PROJECT. Approve • a budget amendment (BA -047) to increase revenue appropriations of $5,000 in Revenue Account 3180 -5860, and increase expenditure appropriations in Account 7015- C3170367 to fund Bayside Drive reforestation project. 24. STAFF ADJUSTMENTS IN HUMAN SERVICES /RISK MANAGEMENT. Approve the addition of a management analyst position and the conversion of two part -time office assistant positions to one full -time department assistant position. S29. REQUEST FOR FUNDING OF STRUCTURAL REPAIRS OF THE OASIS SENIOR CENTER. Approve a budget amendment (BA -048) to appropriate funds from the General Fund - Fund Balance to the Capital Improvement Project Account 7011- C4120538 - OASIS Senior Center Improvements, to undertake the critical structural repairs of the OASIS Senior Center. S30. BALBOA BAY CLUB (BBC) LEASE OPTION EXTENSION REQUEST PROPOSED AMENDMENT. Authorize preparation of a formal amendment to the option to lease consistent with the proposal and authorize execution of the proposed amendment by the Mayor. Motion by Mayor Pro Tern Adams to approve the Consent Calendar, except for those items removed (8, 12, and 22), and noting the abstention by Council Member Thomson on Item No. 11. • The motion carried by the following roll call vote: Ayes: Thomson, Glover, Adams, Debay, Ridgeway, O'Neil, Mayor Noyes Volume 53 - Page 244 INDEX Economic Development Committee (24) Res 2000 -26 Balboa Village Business Improvement District (BID) (27) Donation of Signs at Newport Elementary School(78) Newport Beach Film Festival (68) BA -047 Reforestation Project (40/62) Staff Adjustments (66) BA -048 Oasis Senior Center Improvements (40/62) C -519 Balboa Bay Club (38) E I City of Newport Beach City Council Minutes March 14, 2000 Noes: None Abstain: None Absent: None ITEMS REMOVED FROM THE CONSENT CALENDAR 8. ORDINANCE ADOPTING CONSTRUCTION SITE FENCING AND SCREENING REQUIREMENTS. Council Member Ridgeway stated that he supports the concept of fencing residential sites; however, he believes that screening is not necessary and would be an unnecessary expense for a process that hopefully does not take more than 180 days. Motion by Council Member Ridgeway to introduce Ordinance No. 2000- 7 adding Sections 15.60.070 and 15.60.080 requiring construction sites to be fenced but without the screening requirement; and pass to second reading on March 28, 2000. Council Member Glover stated that she requested this report because there are many homes that have been knocked down for reconstruction in Newport Heights. She believed that placing the screens around the construction site makes the area a "non- event" and completely changes the atmosphere, compared to a site with no fencing. Council Member Ridgeway believed that Council Member Glover's concerns are controlled by other regulations, while fencing normally deals with safety. He indicated that it is almost impossible to hide construction sites in the City and that screening does not hide them. Council Member Glover added that screening also cuts down on the noise. The motion died for lack of a second. Motion by Council Member Glover to introduce Ordinance No. 2000 -7 adding Sections 15.60.070 and 15.60.080 requiring construction sites to be fenced and screened, and pass to second reading on March 28, 2000. Regarding exceptions, Building Director Elbettar stated that the applicant can discuss concerns at a pre- construction meeting and that exceptions can be granted at that time. He confirmed that the ordinance indicates that he is the person that grants the exceptions. In response to Council Member Ridgeway's questions, Mr. Elbettar stated that screening can be a means of erosion control during the rainy season if applied effectively and that that large tract developments and grading sites do voluntarily screen their sites to control erosion. He reported that the screens may minimize the dust; however, he is not aware of any studies that indicate that the screens decrease noise. The motion carried by the following roll call vote: • Ayes: Noes: Thomson, Glover, Adams, Debay, O'Neil, Mayor Noyes Ridgeway Abstain: None Absent: None Volume 53 - Page 245 INDEX Ord 2000 -7 Construction Site Fencing (26) • • City of Newport Beach City Council Minutes March 14, 2000 12. OCEAN FRONT STREET END IMPROVEMENTS, 60TH, 62ND, CEDAR, WALNUT AND LUGONIA STREETS - AWARD OF CONTRACT (C- 3234). Council Member Debay stated that the City has an agreement with the Coastal Commission to work on a certain number of street end improvements in West Newport. She reported that the improvements create a safer environment and keep the sand from blowing onto the boardwalk. She noted the street ends that are budgeted in the 1999 -2000 budget and reported that seven more street ends will be completed over the next two years. She believed that, once all the street ends are completed, the funds from the Ocean Front encroachment agreement should be used to assist with the City's largest undergrounding project and to widen the sidewalks, remove the poles, and relocate the fire hydrants to meet ADA requirements. Public Works Director Webb referenced Council Policy L -12 and indicated that this request would fall under the "similar project" provision. Motion by Council Member Debay to 1) approve the plans and specifications; 2) award a contract to JDC, Inc. for the total price of $135,861 and authorize the Mayor and the City Clerk to execute the contract; 3) establish an amount of $13,500 to cover the costs of testing and unforeseen work; and 4) direct that the funds from the Ocean Front assessment agreement be assigned to undergrounding and street repairs in West Newport after the street ends are completed. The motion carried by the following roll call vote: Ayes: Thomson, Glover, Adams, Debay, Ridgeway, O'Neil, Mayor Noyes Noes: None Abstain: None Absent: None 22. COUNCIL POLICY REVISIONS FOR 2000 AND REAFFIRMATION OF CITY'S STATEMENT OF INVESTMENT POLICY. Regarding Council Policy F -1, Mayor Pro Tem Adams indicated that he provided suggestions last year to fine tune the investment policy, but was unable to meet with staff to implement them. He stated that he would like to see a policy relative to the fee the City pays its asset managers, how they are selected, and clearer guidelines on the reports they provide. He believed that it would make it easier for Council to compare and understand the reports with more uniform reporting, noting that the City is not assessing the managers' performance against any benchmark. Regarding municipal bond estimates, Mayor Pro Tem Adams reported that the policy does not have a stated maximum maturity. He also believed that the reporting to Council has slipped since the Finance Committee was disbanded and is falling short of the requirements in the policy. He suggested that, as part of the reporting procedure, Council consider having the asset managers present their reports quarterly or bi- annually at a study session. He indicated that he will move the recommended action but asked that he meet with staff to articulate his suggestions in more detail. Volume 53 - Page 246 INDEX C -3234 Ocean Front Street End Improvements (38) Council Policy Revisions (69) City of Newport Beach City Council Minutes March 14, 2000 II23 • Mayor Noyes asked if this item should be continued. Mayor Pro Tem Adams pointed out that there is a requirement that the policy be reaffirmed annually, but Council can change the policy in the near future if needed. Council Member Glover stated that she sits on the South Coast Air Quality Management District and chairs the investment committee. She reported that their study concluded that Newport Beach had the best yields, best policy, and tightest and most conservative rules compared to Los Angeles County, the City of Los Angeles, Riverside County, the City of Riverside, San Bernardino County, and Orange County. Mayor Pro Tem Adams stated that the report is probably true; however, he indicated that there is no way for Council to come to that conclusion by the way the reports are presented. He indicated that he will be suggesting some type of aggregated investment reporting so that Council knows what the aggregate yield is and can easily see how the City is doing against the targets. Motion by Mavor Pro Tem Adams to a) approve the proposed revisions to Council Policies A -2, A -4, A -6, D -2, E -2, F -2, F -5 and G -3; b) reaffirm Policy F -1 (Statement of Investment Policy); and c) direct staff to meet with Mayor Pro Tem Adams to discuss issues raised relative to Policy F -1. The motion carried by the following roll call vote: Ayes: Thomson, Glover, Adams, Debay, Ridgeway, O'Neil, Mayor Noyes Noes: None • Abstain: None Absent: None PUBLIC COMMENTS Mike Johnson, 5803 Seashore Drive, invited everyone to the March 23 conceptual plan unveiling of the Orange Coast River Park. He stated that they distributed over 5,000 or 6,000 fliers and are looking for input on how to use the land. I£ anyone has questions, Mr. Johnson can be reached at 642 -3125 or they can contact Louise Greeley at 631 -1475. Marlon Hernandez, student at Newport Harbor High School, urged Council to open up more parking. He is unsure where this would happen but reported that he parks two blocks away from school in an area designated for two hour parking. In response to Mayor Noyes' question, Mr. Hernandez confirmed that the parking lot up the street is for senior parking but that he was not one of the seniors who was issued a parking pass. Council Member Glover indicated that the City has done many things to improve parking and is unsure where they could go next. She asked whether the 15th Street parking lot is full, but Mr. Hernandez was unsure where that lot was located. Council Member Ridgeway stated that he is heading the Youth Council this year and that they will be conducting Youth Council Day at City Hall on May 25. He reported that the #1 priority they will be discussing that day is the parking • situation at Newport Harbor High School and that he requested to receive all staff reports on this issue. Volume 53 - Page 247 • • City of Newport Beach City Council Minutes March 14, 2000 Nan Morisseau, Newport Beach Recital Series Pacific Virtuosi, invited Council to the Fifth Anniversary Tchaikovsky Spectacular 160th Birthday Celebration at 7:30 p.m. on Sunday, March 26 at the Barclay Theater, 4242 Campus Drive in Irvine. She stated that the concert will also be free to anyone born on March 26. She reported that they are in a case study for the Newport Beach Performing Arts Center and that more information can be obtained by going to their website (www.pacificvirtuosi.org). She indicated that Baritone Boris Zbaivoronok, Cellist Boris Andrianov, Concert Pianist Leonid Levitsky, and Concert Master of the Long Beach Symphony Roger Wilkie will be participating in this year's program entitled Romances for Voice and Piano. PUBLIC HEARING 25. 2000 -2005 CONSOLIDATED PLAN DOCUMENT FOR COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS. Senior Planner Teague reported that the Community Development Block Grant (CDBG) funds are administered by the Federal Department of Housing and Urban Development (HUD) who require annual renewals within a five -year framework. She stated that 1995 was the last year one was done and that a one -year action plan has been completed each year. Staff is currently writing the staff report for the 2000 -2005 Consolidated Plan which is expected to be brought to Council in April. She indicated that the primary expected expenditure will be the Balboa Village Pedestrian Improvement Plan that was approved by Council last month. She also reported that the City expects to use the maximum amount allowed by HUD (15 percent of the funds) on social services. She indicated that any comments made tonight, as well as those made next month, will be incorporated into the plan that will be submitted to HUD by May. Mayor Noyes opened the public hearing. David Levy, 201 South Broadway in Santa Ana, stated that he is a housing rights advocate for the Fair Housing Council of Orange County, serves as the President of the Affordable Housing Clearinghouse Board of Directors, and sits on the Boards of the Orange County Homeless Usage Task Force and Clearinghouse Community Development Financial Institution. He believed that 65 percent of the CDBG allocation should be used for programs other than social services and administration. He urged Council to give a high priority to programs that build and rehabilitate housing for low- income households rather than on the Balboa Peninsula revitalization efforts. He added that the highest priority should be given to the extremely -low income category (households earning 0 -30 percent of the area median income) since HUD specifically identifies them. He stated that he is emphasizing that category because of Orange County's high median income, clarifying that an extremely -low income household is a family of four that earns about $23,000 a year. Mr. Levy reported that Southern California has many workers that are stuck at earning minimum wage with no opportunity to move up and believed there is a crisis in Orange County. Ms. Teague reported that the City has applied all of the funds toward affordable housing since the City has been receiving CDBG funds (13 years). She indicated that the general outline in the next five -year plan will be Volume 53 - Page 248 INDEX Community Development Block Grant Funds (CDBG) (87) City of Newport Beach City Council Minutes March 14, 2000 • dedicated to the Balboa Village Pedestrian Improvement Streetscape Plan and clarified that the City is trying to use other funds to develop affordable housing. She emphasized that it is not that affordable housing is not an identified goal, but that the City is not targeting the Federal funds for it especially since Banning Ranch is anticipating developing more affordable housing in the City. There being no further testimony, Mayor Noyes closed the public hearing. Motion by Council Member Rideewav to direct staff to move forward as indicated in the staff report. The motion carried by the following roll call vote Ayes: Thomson, Glover, Adams, Debay, Ridgeway, O'Neil, Mayor Noyes Noes: None Abstain: None Absent: None CURRENT BUSINESS 26. APPOINTMENT OF AFFORDABLE HOUSING TASK FORCE. Motion by Mayor Noyes to adopt Resolution No. 2000 -27 establishing the • Affordable Housing Task Force; and confirm Mayor Noyes' appointment of Council Member Debay (Chair), Council Member Ridgeway, and Mayor Pro Tom Adams to the Affordable Housing Task Force. Council Member Ridgeway urged Council to prioritize the Lower Bayview Landing site for senior affordable housing. Mayor Noyes indicated that this issue can be discussed when the task force meets. The motion carried by the following roll call vote: Ayes: Thomson, Glover, Adams, Debay, Ridgeway, O'Neil, Mayor Noyes Noes: None Abstain: None Absent: None 27. SUPPLEMENTAL REPORT ON THE BALBOA YACHT BASIN (BYB) REQUEST FOR PROPOSALS PROCESS. City Manager Bludau reported that this item was discussed at a study session on February 22 and that it was decided it would be further discussed at a regular meeting. He indicated that Council requested and received more information and The BellPort Group's proposal was shared with the Balboa Yacht Basin (BYB) tenants. He stated that staffs recommendation to continue City management over the BYB using City staff is still the same. • Joe Ueberroth, The BellPort Group, 301 Shipyard Way, thanked Council and indicated that The BellPort Group (BellPort) is honored to be selected as one of the top bidders. He believed that BellPort's proposal is the most cost effective option, even compared to the City, and pointed out that they are Volume 53 - Page 249 11011 AI Res 2000 -27 Affordable Housing Task Force (24) Balboa Yacht Basin Management (51) • City of Newport Beach City Council Minutes March 14, 2000 even proposing to increase management services and resources for less. He assured that they have a passion to try to make the City the greatest destination on the coast. Mr. Ueberroth indicated that he was overwhelmed that 130 tenants signed the petition, but noted that they signed it prior to BellPort submitting their proposal. He realized that the tenants signed the petition because they were not in favor of the City going with an outside company who would not provide additional benefits and whose management fees would drive up costs. He stated that they talked with many of the tenants who signed the petition and understands their concern to continue the marina as a City marina. He emphasized that BellPort would just be leasing the marina from the City and would not take over control; does not set the rates but would make recommendations; and cannot change the rules at the marina. Mr. Ueberroth reiterated his belief that BellPort is the low -cost provider and the most cost effective approach. He stated that there might have been a mistake in the City's estimate because the City did not use current salarylbenefit and operating costs. Regarding benefits, he pointed out that BellPort is bringing more staff on board, compared to the City's one full-time and one part -time employees. Further, they have resources to handle marketing and environmental concerns, and can also track guest boaters. He asked Council to strongly consider the option of having BellPort be the BYB managers. is Mayor Pro Tem Adams asked if BellPort's proposal offers employment to the City employees who would be displaced. Mr. Ueberroth stated that they can provide more affective coverage by using alternative methods. Mr. Bludau indicated that the City would see where the employees could be shifted; however, one or both of them may be laid off in accordance with the memorandum of understanding if no appropriate place can be found for them. Mr. Ueberroth noted that the City is not staffed to deal with environmental issues, but those employees may be suited for that. In response to Mayor Pro Tem Adams' questions, Mr. Ueberroth stated that BellPort would provide a team of people who will be at the facility seven days a week to fix problems and conduct preventative maintenance. He added that BellPort has a program to assist guest boaters locate slips in the area and that the revenue is shared with the tenants and the marina. Mr. Bludau indicated that subleasing does take place when the City is notified that someone has a slip available; however, the City does not market that feature as much. Council Member Debay requested that Mr. Ueberroth explain the benefits that BellPort offers. Mr. Ueberroth reported that they have a concierge program that is not exclusive; provide newsletters; and provide information on discounted, reliable boat services. Regarding the sublease program, he wondered how the tenants would sublease if BellPort did not do it. He stated that they reduce the tenant's rates and have received positive • feedback on this program. He added that they try to make events a community event (i.e. Boat Parade) and conduct functions for the tenants. He emphasized that BellPort is dedicating more manpower to the marina and constantly communicate with the boaters. Further, they send out Volume 53 - Page 250 City of Newport Beach City Council Minutes March 14, 2000 • environmental newsletters to tenants about their responsibilities and future concerns. Regarding trash in the water, Mr. Ueberroth stated that BellPort does skim the water on a daily basis and sometimes twice a day if there is high storm drain runoff. Ron Bower, 1430 Serenade Terrace, stated that he has been a tenant at BYB for 15 years, is a Balboa Basin Yacht Club board member, and is representing the tenants of BYB. He pointed out that the City was not looking to outsource management when this process began and that there were no problems with City management that inspired this bidding process. He stated that BellPort is using Peter Ueberroth and Dick Stevens in an effort to promote themselves for privatized management. Further, the tenants signed a "vote of confidence ", not a petition, in support of the City's continued management because the City has provided excellent service. Mr. Bower stated that the tenants are concerned about the level of service and the attitude of personnel if BellPort is awarded this contract. He indicated that this opinion has been formed based on input from a number of tenants that have firsthand experience in BellPort marinas. He pointed out that the City Manager recommended that all proposals be rejected and that the City continue to manage the marina. He indicated that BellPort already controls a majority of the marinas in Newport Harbor, believing that awarding this contract to them would give them a monopoly and would not be in the best interest of the City. Mr. Bower concluded by stating that it is difficult to imagine why the City would come to any other conclusion since • the City Manager is recommending that the City retain management and since the tenants want the City to remain onboard as managers. Regarding subletting slips, Mr. Bower pointed out that the lease does provide for that and any funds that would be gained is passed on to the tenants. He noted that property taxes are passed on to the tenants since BYB is a City -owned property and wondered if the City could legally lease BYB to outsiders and retain some of the profits generated from subleasing based on the fact that the tenants already pay the possessory use taxes. Tom Murphy, Balboa Yacht Basin tenant, stated that he drives past three marinas and pays 1/2 to 2/3 more than he would in the other marinas because of the charisma of Newport Beach. He indicated that he spends three weekends a month at BYB, spends money at the City's restaurants and stores, and pays taxes to own the slips. He admitted that proposals in the beginning seemed to be offering a lot for less money, but assured Council that the City is managing BYB very well. Mr. Murphy indicated that the tenants are not looking for a fancy marina, but are looking for a well run marina at a fair price. He asked that Council not "rock the boat" because the tenants do not need new management with a profit agenda that may preclude service and price, and they do not need a management company that would control the rates of the entire harbor through marina takeovers. Sherry Bower, 1430 Serenade Terrace, stated that her second home is at BYB and has been for 15 years. She indicated that she has been in the third • party property management and commercial brokerage business since 1985, and holds the Certified Property Manager designation from the Institute of Real Estate Management. As a professional, she reported that there are only three reasons why an owner would outsource management, spend Volume 53 - Page 251 INDEX City of Newport Beach City Council Minutes March 14, 2000 is additional money, and then distance themselves from the asset: geographic proximity does not work, they do not have the personnel, and they do not have the expertise. However, in this case, the City has the geographic proximity, personnel has done an outstanding job, and the City has the expertise as proven by decades of management. She believed that the City should be incredibly proud of its fine job at the marina and reminded Council that the tenants have given the City an overwhelming vote of confidence. Ms. Bower expressed concern that some may think this is all about money. She indicated that the tenants recognize that Council has a responsibility to the City and understands that Council maintains the incredible burden of fiscal responsibility. However, at the end of the day, it is not about money because the market sets the rates. She emphasized that part of this is about maintaining a sense of community and a City attachment to the marina without the burden of a disengaged third party manager. She stated that they know BellPort's reputation and they know how they operate because their fellow boaters tell them. She indicated that they do not need a concierge program, do not care about discounted services, and that subleasing is not an issue to most of them. Ms. Bower emphasized that this is about keeping the City in very close touch with a precious asset and asked that the City not distance itself. She believed that it feels like "David and Goliath" since Peter Ueberroth is a driving force in The BellPort Group and a very powerful and influential man. She respectfully stated that what is in Peter Ueberroth's and BellPort's best interest is not in the best interest of • the City and its residents. She thanked Council for what they have already done no matter what the outcome. Council Member Ridgeway stated that BellPort is certainly a qualified third party manager; however, he is still not persuaded in believing that the City cannot do a better job. Further, the City needs to continue a presence on the harbor since it is the one toe -hold and since the City has done an excellent job with it. He reported that the Harbor Committee discussed a general plan element that addresses the harbor and that guest boat usage is one of the biggest components. He pointed out that docks and moorings are almost 100 percent leased. In fact, there is a 20 year waiting list for moorings. He reiterated that the City is doing a good job and emphasized that it is important for the City to maintain a presence in the harbor. Motion by Council Member Ridgeway to reject all proposals and continue to operate the BYB using City staff. Council Member Glover stated that she will not be supporting the motion. She indicated that the Harbor Committee recommended that the City not have a guest program, but now the City has an opportunity to use networking for this type of program. She also noted that NPDES will be a huge, expensive issue for the City in the future and that BellPort is willing to work with the City on this. She indicated that she walks that area frequently with her grandchildren and that the water is filthy. She stated that it can only be a positive for the City if BellPort is going to clean the • water. She expressed concern that the many calls on this have inferences that BellPort is not capable of doing this, when they are actually capable. Volume 53 - Page 252 INDEX City of Newport Beach City Council Minutes March 14, 2000 INDEX • Council Member Ridgeway stated that he is the chair of the Harbor Quality Committee and is on the Harbor Committee. He indicated that he hoped that some of the members were present to discuss the importance of keeping a presence on the bay. He reported that BellPort is one of the companies the City has noted as a violator of environmental concerns so their new -found environmental consideration is based on the City talking to them. He agreed that environmental issues are a real concern; however, he noted that the City is looking at this issue and is manned to take care of it. Mayor Pro Tem Adams expressed the opinion that the City should give BellPort an opportunity to manage BYB. In response to Mayor Pro Tem Adams' questions, Mr. Bludau stated that there is only a proposal at this time, but BellPort is proposing a three year initial term with a 30 -day termination option notice if profits are not met. Mayor Pro Tem Adams stated that there is a lot to gain and very little to lose. He believed that the City will still have the presence on the bay because it still owns the marina, but will just be contracting out the management. He added that he does not see the tangible benefits of only having one full -time and one part -time employee managing the facility. He stated that the proposal is a responsible response to the RFP. Council Member Debay stated that it is hard to ignore the comments that were written on the tenants' vote of confidence. She indicated that she is going to support the motion, as long as the City skims the water for trash • and debris, but indicated to BellPort that she is not saying they should not come back next year. She noted that they had a great proposal and this was a hard decision to make. Council Member Thomson stated that he would ordinarily be supportive of outsourcing these types of things, but emphasized that this is the City's one foot -hold to the bay and that the City should be very proud of it since it was built and maintained by the City. He reported that there are about 5,000 to 7,000 boats in Newport's waters. Council Member O'Neil stated that he listened to both sides of the issue and has met with Joe Ueberroth and Dick Stevens. He indicated that he was interested in the proposal because everyone is looking for a way to privatize some of the City's activities and felt it was worthwhile to investigate whether outsourcing the marina management made sense. He added that he is aware that BellPort is a very reputable and fine organization to manage marinas throughout the State. However, since it appears that there is not a strong consensus on Council and he does not have a compelling vote either way, he is inclined to go along with staffs recommendation. He recommended that the City continue surveying BYB tenants and reiterated that the marina boaters want to stay with the current operation. Council Member Ridgeway expressed the opinion that BellPort is a fine operation and that the City has the opportunity to learn from them. Further, the City can reassess the entire situation in the future but not at this time. • Deputy City Manager Kiff indicated that Council Member Ridgeway appropriately stated that the Harbor Quality Committee directed staff to meet with BellPort to talk about concerns at Lido dry slips. He stated that BellPort responded appropriately to try to keep the area clean in terms of Volume 53 - Page 253 is City of Newport Beach City Council Minutes March 14, 2000 maintenance. However, when asked if the City was doing the right things at BYB, he, Deputy Fire Chief Melum, and Code Enforcement Officer Sinasek came to the consensus that no one is doing the right thing. He emphasized that he was not picking on BellPort and does not see them as violators. The motion carried by the following roll call vote: Ayes: Thomson, Debay, Ridgeway, O'Neil, Mayor Noyes Noes: Glover, Adams Abstain: None Absent: None 28. RESPONSES TO MARINAPARK REQUEST FOR PROPOSALS. Assistant City Manager Wood stated that staff issued a request for proposals (RFP) as directed by Council for future use or redevelopment of the Marinapark site. She reported that the City received proposals from 17 parties and that the staff report includes a brief summary. She pointed out that there is a great variety of proposals in terms of uses and revenue, and noted that this will be a very significant and complex policy decision. She indicated that staff is suggesting a few alternatives for Council consideration on how to review the proposals and move forward with the analysis. She stated that staff believes that an economic analysis needs to be conducted and a relocation impact report needs to be completed if Council wants to make a decision soon. Additionally, a quick look at the requirements for land use entitlement and traffic impacts also needs to be conducted. She stated that all the proposals can be reviewed or Council can narrow the proposals down. She indicated that Council may also choose to delay taking action on the proposals until there is some action that resolves the tidelands boundary issue. Council Member Ridgeway recommended that the City conduct an economic evaluation of all the proposals and conduct a relocation analysis to be brought back to Council with recommendations. He also requested that Council direct the City Attorney's office to file an action for a judicial determination regarding the uplands issue. Ms. Wood estimated that the analysis would cost less than $10,000. Council Member Ridgeway hoped that is would cost less than $5,000. Stewart Berkshire, 1770 West Balboa Boulevard, #7A, President of the Marinapark Association, thanked Council for extending their lease for two years and also thanked Deputy City Manager Kiff and Assistant City Attorney Clauson for coming to City Hall on their days off to talk with them about the new lease. He added that they appreciate Council's active support of their case before the State Lands Commission. He indicated that using the judicial arena is not unheard of, noting that this is how the high tide line was determined in 1927 or 1928. Mr. Berkshire reported that they presented their case to the State Lands Commission and the City subsequently voted to join them in urging the Commission to straighten the high tide line across their property the same as it is with the adjacent properties on either side. He expressed appreciation also for pledging to give consideration to the tenants when evaluating the proposals. He stated that this could get emotional when tenants think they will be moved out of their Volume 53 - Page 254 INDEX Marinapark Proposals (73) City of Newport Beach City Council Minutes March 14, 2000 • homes sometime in the future. Motion by Council Member Ridgeway to direct staff to hire a consultant to conduct an economic evaluation of each of the proposals and to conduct a relocation analysis to be brought back to Council at a future meeting; and direct the City Attorney to come back with the pros and cons associated with seeking a judicial determination on the uplands issue. City Manager Bludau believed that the economic evaluation can be conducted in about three weeks, but the relocation analysis would probably take two months to complete. Mayor Noyes recommended receiving the reports in increments. City Attorney Burnham indicated that he will bring a report back relative to a judicial determination at a closed session. Council Member Glover took issue with the consultant cost, believing that the City will not get much for only $1,200 per proposal. Ms. Wood noted that $10,000 was just an estimate based on what other analyses have cost the City. Mr. Bludau indicated that the City will be hiring someone who has previously worked with these types of proposals and is business savvy to raise questions that would help Council in evaluating the proposals further. Mayor Pro Tem Adams pointed out that the major economic benefits have already been outlined in the chart provided in the staff report and assumed that Council is talking about looking at secondary economic benefits, i.e. • sales tax and economic stimulus to the area. Ms. Wood clarified that the City needs someone who does economic analysis of development proposals all the time and has a better understanding of the market. The motion carried by the following roll call vote: Ayes: Thomson, Glover, Adams, Debay, Ridgeway, O'Neil, Mayor Noyes Noes: None Abstain: None Absent: None MOTION FOR RECONSIDERATION 530. BALBOA BAY CLUB (BBC) LEASE OPTION EXTENSION REQUEST PROPOSED AMENDMENT. Motion by Council Member Thomson to reconsider Item No. S30 so that he could abstain from voting on it. Council Member Glover asked and received clarification from City Clerk Harkless that the agendas are available on the City's website. Council Member Glover indicated that she thought this issue was placed under current business, not the consent calendar. Council Member Thomson asked if there was a policy that prohibits • supplemental items from being placed on the consent calendar. Mayor Noyes indicated that he is not aware of such a policy. City Manager Bludau indicated that the direction from Council is to only place items that are absolutely necessary on a supplemental agenda. Council Member Thomson Volume 53 - Page 255 INDEX City of Newport Beach City Council Minutes March 14, 2000 requested that this be reviewed. The motion for reconsideration carried by the following roll call vote: Ayes: Thomson, Glover, Adams, Debay, Ridgeway, O'Neil, Mayor Noyes Noes: None Abstain: None Absent: None Motion by Council Member Ridgeway to authorize preparation of a formal amendment to the option to lease consistent with the proposal and authorize execution of the proposed amendment by the Mayor. The motion carried by the following roll call vote: Ayes: Glover, Adams, Debay, Ridgeway, O'Neil, Mayor Noyes Noes: None Abstain: Thomson Absent: None Regarding the OASIS Senior Center, Mr. Bludau reported that the staff report could not get on the agenda, but he deemed it of such importance that he placed it on a supplemental agenda and takes responsibility for it. • ADJOURNMENT - 9:40 p.m. The agenda for the Regular Meeting was posted on March 8, 2000, at 3:30 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 March 10, 2000, at 3:00 p.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. City Clerk u A;'i'l (BMW-) Recording Secretary 1��FORts \P Volume 53 - Page 256 INDEX