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HomeMy WebLinkAbout02/26/2002 - Study Session{ CITY OF NEWPORT BEACH City Council Minutes Study Session February 26, 2002 - 4:00 p.m. Present: Heffernan, O'Neil (arrived at 4:30 p.m.), Bromberg, Glover, Adams, Proctor, Mayor Ridgeway Absent: None CURRENT BUSINESS 1. CLARIFICATION OF ITEMS ON THE CONSENT CALENDAR - None. 2. PRESENTATION ON CONFLICT OF INTEREST AND COUNCIL ADVOCACY ON PROJECTS. Mayor Ridgeway noted that this type of presentation is generally received at a League of California Cities meeting or some type of meeting outside of City auspices. However, since no retreat was held this year, it is appropriate to hear from Mr. Kohn. Phil Kohn, Rutan and Tucker, Laguna Beach City Attorney, stated that this is a timely topic to discuss with Council in light of the newspaper articles about heightened public scrutiny of activities that transpire to other jurisdictions. Further, there has been recent highlights in the guidelines that the Fair Political Practices Commission (FPPC) has adopted that bear on some of the issues he will be discussing. He emphasized that his statements are not intended to be advice on how to deal with a specific situation. He stated that there are very fact specific inquiries that require careful consideration and sometimes there are a number of exceptions to the general rule. He emphasized that he will be presenting highlights of the major regulations that Council should be concerned with. Further, this may also serve as a refresher to the sensitivity that the State Regulatory Authorities and the public have about conflict of interest issues. Mr. Kohn reported that the conflict of interest laws touch on a lot of fundamental notions, i.e. the public officials hold an office of public trust and they should be discharging those responsibilities in a manner that is impartial, free from bias, and free from any consideration of the public official's or their supporter's financial interests. He stated that the appearance of impropriety is almost as disfavored as an actual impropriety. He reported that the three essential sources of authority for conflict of interest laws are statutory sources, common law sources, and local regulations. He noted that local regulations can be ordinances or charter provisions, and that each local jurisdiction retains the ability to adopt its own code of ethics or conduct requirements. Mr. Kohn stated that he will be discussing two types of statutory sources: the Political Reform Act (Section 81000 and following) and Government Code Section 1090. He reported that the Political Reform Act is a measure Volume 55 - Page 1 INDEX No report City of Newport Beach Study Session Minutes February 26, 2002 INDEX adopted by the voters in 1974 and deals with a number of topics, including election campaign activities, disclosure requirements for campaign contributions, and activities of lobbyists. He stated that this is administered by the FPPC, a State body appointed by the Governor, who is charged with promulgating administrative rules and regulations to compliment the regulations that are otherwise found in the statutes. Regarding conflict of interests, he indicated that the general prohibition in the Political Reform Act states that, "A public official may not 1) make; 2) participate in the making of; or 3) use ones official position to influence or attempt to influence the outcome of a decision in which the public official knows or has reason to know he or she has a financial interest ". He noted that the Political Reform Act deals only with economic interests, and that a necessary interest exists if it is reasonably foreseeable that a decision pending before the body of which you are a member will have a material financial affect on one or more of your economic interests, and if that affect is distinguishable from the financial affect on members of the public. He reported that, to discharge the requirements of the Political Reform Act, public officials disclose their economic interests or disqualifies themselves under appropriate circumstances. Mr. Kohn stated that the FPPC has established an eight step approach to ascertain whether a conflict of interest exists. He explained that a person has to ask themselves 1) if they are a public official within the meaning of the Political Reform Act; 2) if they are making, participating in the making, or influencing a government decision; 3) what are their economic interests; 4) are their economic interests directly or indirectly involved in the government decision; 5) what kinds of financial impacts on those economic interests are considered important enough to trigger a conflict of interest; 6) is it substantially likely that the government decision will result in one or more of the maturiality standards being met; 7) if you do have a conflict of interest, does `public generally exception" apply; and 8) even if the public official has a disqualifying interest, is the public official's participation legally required. Regarding GC 1090, Mr. Kohn reported that this is aimed at avoiding self - dealings in local agency contracts and was enacted long before the Political Reform Act. He stated that the GC 1090 states that, "City officers and employees shall not be financially interested in any contract made by them in their official capacity or by any body or board of which they are members ". He explained that this differs from the Political Reform Act in that, with the Political Reform Act, it is sufficient to avoid a violation by disclosing the conflict and then recusing oneself from participating in the decision. However, GC 1090 states that disclosure and disqualification are not enough because, if the official has an interest in a contract made by the city council, even though that council member may have recused him or herself from that decision, there still will be a violation. He reported that the making of a contract encompasses much more than a decision to simply approve the contract or authorize the execution of a contract, but includes everything that culminates in the authorization to approve and execute the contract, such as drafting the contract and participating in negotiations. He stated that the prohibitions in GC 1090 relate to indirect and direct interests of the public official. He emphasized that it does not matter if there is actual fraud or dishonesty involved; it does not matter if there was an actual loss to the city as a result of the contract; it does not matter that the contract is fair, just, and equitable on its face and terms; and it does not matter that the Volume 55 - Page 2 City of Newport Beach Study Session Minutes February 26, 2002 INDEX prohibited contract would be more advantageous to the city than other contracts. He added that the exceptions to the prohibition on self dealing and contracts include the remote interest category and the non- interest category. He explained that remote interest is sufficient in cases in which the officer or employee discloses the interest in the contract, abstains from participating in any activities involved in the making of the contract, and the legislative body ultimately approves the contract without counting the person's vote. He stated that examples of a non - interest is where an officer or employee owns less than 3% of the shares of a for - profit corporation of the contracting party or where the income from the stock of the for - profit corporation is less than 5% of the total income. He reported that there is a limited rule of necessity applicable to GC 1090, but this relates to narrower circumstances in which there is a need for the agency to acquire an essential supply or service from a sole source or the public officer is the only person under the circumstances who may legally act. Mr. Kohl reported that the penalties for violating GC 1090 include invalidation of the contract, criminal sanctions for a willful violation, forever disqualified from holding office in the State, or forfeiting the contractual consideration that was received. Mr. Kohl stated that common law sources are principals of conflicts of interest that have developed through decisions from the California courts, as well as opinions that have been rendered by the California Attorney General. He indicated that the philosophy that underlies the common law conflict of interest is that a public official is impliedly bound to exercise the powers conferred on him with disinterested skill, zeal, and diligence, and primarily for the benefit of the public. He stated that it is the obligation of public officials to discharge the responsibilities with integrity and fidelity. He reported that issues of common law conflicts of interest come up most frequently in the due process context in which council is conducting public hearings and there needs to be an assurance that the decision maker is not being tempted by non - financial, personal interest. He indicated that any matter that forms the basis for bias or prejudice, even though they do not relate to financial interest can form the basis for a common law conflict of interest. Council Member Proctor requested clarification regarding the relationship of policy makers to staff as implementers of the policy, and where the line is in terms of their ability to involve themselves or direct staff. He added that he also has questions regarding the principal of liability and negligent oversight. Mr. Kohn believed that this does not relate to the Political Reform Act because it is not a conflict of interest, an economic interest, or common law bias situation, but is more of an internal administrative issue. He reported that the source of authority to answer that question is typically found in local ordinances or the charter which delineates the powers or obligations of council versus staff. He stated that the prevailing practice of "to the best of his knowledge" provides that, for the day -to -day operational functions of the City, they are generally reposed by a chief executive or operating officer. He added that some cities have adopted ordinances prohibiting direct contact between council members and persons other than city managers. City Attorney Burnham stated that, if Council wants, staff can provide them with a summary of what Mr. Kohn presented. Further, the summary can Volume 55 - Page 3 City of Newport Beach Study Session Minutes February 26, 2002 INDEX also deal with Council Member Proctor's issues regarding local ordinances, the charter, and the section relative to supervisors. He indicated that, after Council reviews it and has additional questions, it can be brought back to another study session. He expressed the opinion that GC 1090 is not written well and the exceptions and provisions are not intuitive. Mayor Ridgeway stated that he read Section 8100 of the Political Reform Act and agreed that it is very confusing. He indicated that Mr. Kohn's verbal interpretation was more enlightening to him. In response to Council Member Glover's questions, Mr. Kohn clarified that a dependent is not defined by age, but is a person to whom you provide financial support. Mayor Pro Tern Bromberg asked if there is a limitation on stock ownership. Mr. Kohn indicated that he can include in the memo specific financial thresholds depending on whether it is a Fortune 500 company or traded on certain exchanges. Council Member Glover stated that, when she first ran for Council, the former City Clerk told her not to turn in her stock information unless she completely owned 100% of the company. However, she started submitting the information after stock questions arose. She reported that she called the FPPC who told her that, if she voted on a shopping center that could have a drug store in it, and if the drug store netted over $250,000, then she would have a conflict of interest because there are so many Pfizer products in it. She emphasized that what Council can and cannot have is very strident and curtails what they can invest in. She stated that she used to have Starbucks stock but sold it because there were so many Starbucks coming into town that she may need to vote on. Mr. Burnham reported that it took them a while to determine whether a company was a Fortune 500 company and met certain income thresholds. He stated that they can provide Council with written material and augment it as time goes on. Council Member Heffernan asked whether a Council Member has a conflict of interest if they serve on a non -profit board in which no compensation is received and if that organization comes before Council. Mr. Kohn believed that the Council Member does not have a conflict of interest under the Political Reform Act since there is no compensation. However, if the provisions of GC 1090 apply, there is no clear cut exception for a non - profit corporation board of directors member. He stated that there is an explicit designation of a non - interest for a member of a non - profit corporation, but not for a member of the board. He indicated that the City Attorney is presently looking into this. Mayor Pro Tern Bromberg noted that he was on the Balboa Theater Foundation Board of Directors and was their attorney, and the City Attorney suggested erring on the side of caution and so he resigned. Mr. Kohn believed the caution was well advised. He stated that, while the FPPC is responsible for administering the Political Reform Act, they do not take responsibility for administering, interpreting, or giving guidance on GC 1090. He indicated that almost all the reported authority on this statute will be found through the opinions of the Attorney General. Mr. Burnham added that the opinions of the Attorney General are not binding to the courts, and Volume 55 - Page 4 4 City of Newport Beach Study Session Minutes February 26, 2002 that this is why he tries to err on the side of conservatism. 3. BALBOA THEATER REHABILITATION PROJECT. Assistant City Manager Wood reported that the City purchased the Balboa Theater in 1998 for $480,000, and the City entered into a lease with the Balboa Performing Arts Theater Foundation in 1999 to use it as a theater and to renovate it without paying rent to the City. She stated that the initial lease contained some provisions for protecting most of the historic aspects of the theater; however, through amendments to the lease, this was changed and now the requirement is for the improvements to return the exterior design and treatment of the front facade as close as possible to its original appearance. She indicated that, in keeping with the lease requirement to retain this as a first class community theater, the Foundation decided to provide stadium seating, dressing rooms, expand the lobby, provide concessions, and increase the number of restrooms. She reported that the two options to add these amenities included constructing a basement for $300,000 or purchasing the building next door at 111 Main Street for $1.6 million. She stated that the basement construction is the most difficult part of the construction project because of its location on the Peninsula and the high water table. Ms. Wood stated that, as the Foundation continued the design process with continual input from the Building Department, the basement construction cost has increased to about $1.7 million. She indicated that they spoke with the owner of 111 Main Street who has a $1.6 million appraisal for the property. She stated that the City's appraisal was $1.4 million. She indicated that the Foundation would need only the parcel closest to the theater, noting that the building sits on three parcels. She believed that it would be possible to cut the building in two, lease the part closest to the theater to the Foundation, and then sell the remainder of the building to recoup the cost of the project. Ms. Wood reported that the City's contribution so far has been $500,000 which includes the original purchase price, as well as the lease which provides that the City pay the building plan check fees from Community Development Block Grant (CDBG) funds. She stated that the current cost estimate with the basement is $5.5 million and the fund balance the Foundation has is $1.2 million. She indicated that the staff report outlines a number of options for Council consideration. Regarding Option 1, she stated that the Foundation spoke to staff about demolishing the side and rear walls, shoring the front fagade, and constructing the basement, but would not move forward until they complete more fundraising. She reported that, since the City is the property owner, staff was not interested in having the Foundation move forward without having a guarantee that they would finish the structure. In response to Council Member Heffernan's question as to who called this item up for Council consideration, Mayor Ridgeway noted that a negotiation item was discussed during closed session and it was agreed upon that this should be discussed in a public forum. Mayor Pro Tem Bromberg stated that the initial investment in November 1998 was with CDBG funds, but asked if the new project would not involve these funds. Ms. Wood reported that the CDBG funds are currently Volume 55 - Page 5 INDEX C -3248 Balboa Performing Arts Theater Foundation (38) City of Newport Beach Study Session Minutes February 26, 2002 INDEX committed to the Balboa Village Public Improvement Project. She stated that, not only is this project using a bulk of the funds but the City has applied for a Section 108 loan which is an advance on future CDBG funds. She indicated that this means that, for the next 20 years, the City has a repayment of over $200,000 /year on the loan. She added that this does not give much flexibility to do other large projects. Mayor Pro Tem Bromberg noted that there is discussion about having the Balboa Theater contribute $200,000 to the project and then they would get the lease for the portion of the other building. He asked if the $200,000 would also give them ownership interest. Ms. Wood stated that this is entirely up to how Council wants to structure the agreement. Mayor Ridgeway noted that the $200,000 could also be used toward construction. Dayna Pettit, President and Founder of the Balboa Performing Arts Theater Foundation, requested Council's help with the project by purchasing the Orange Julius building. She indicated that they would pay $200,000 for 1/3 of the building to take the place of the current basement, noting that this would save them over $1 million. She reported that their Board of Directors has grown to 13 members who are very serious about a revitalized Balboa with a vibrant performing arts center and cinema theater being the centerpiece for the current renovation. She added that it would also serve as a catalyst to change the current nature of the Village which now has decrepit shops, vacant buildings, and graffiti. Ms. Pettit reported that they were ready to begin construction upon the receipt of their permit last May, but the Building Department raised a red flag about the liability of constructing a basement in the theater. She stated that this came after they spent $250,000 on plans which already went through the plan check process for 1%x years. She emphasized that the money used to purchase the theater was CDBG funds which is earmarked for only depressed areas. Ms. Pettit reported that they raised over $2.4 million; their 2000 -2001 campaign has brought in over $180,000; and the Divas and Support Guild have raised over $100,000 since their inception two years ago. She stated that they have been off course the last I% years, but have corrected this and are moving forward. She added that they hired a search team to find a business person with strong fundraising skills, they completed a sellout Israeli author event in concert with the Orange County Jewish Federation, and have been voted one of the top ten non - profit organizations in the Greater Newport Beach and Orange County communities by 714 Magazine. She stated that they need an additional $3.9 million to help the City purchase the building next door, build the theater, and endow them through their first year of operation. She emphasized that the purchase of the building next door is a major part of the solution and the City's support is critical to the success of Balboa. Council Member Heffernan noted that the City already has $500,000 invested in this, now it is supposed to spend three times that amount, and the Foundation has $1.2 million in the bank. He asked whether the City will have to fill the gaps in the budget until the project is completed if the theater comes up short with their fundraising. Ms. Pettit stated that she firmly believes that the funds will be raised and that everything the City is spending in Downtown Balboa is not going to do any good unless the nature of the area is changed. Council Member Heffernan noted that the new library in Westcliff needs $1 million and the City told them to raise funds in the neighborhood first rather than Iook to the City for funding. He Volume 55 - Page 6 City of Newport Beach Study Session Minutes February 26, 2002 INDEX expressed the opinion that a library is more in tune to the long term business of the City than a theater. He stated that, what the theater is asking the City to do, is a fraction of what it will take to get the job done. He indicated that, if the City purchases more real estate but does not have the money to complete the job, the citizens will look at Council strangely. Ms. Pettit assured Council that they are intent on getting this project done. Adele Mann agreed with Council Member Heffernan. She asked if the City has an extra $1.6 million to do this, noting that two weeks ago someone mentioned that there are budget shortfalls. She stated that this project has been going on since 1998 and asked what the timeline was for this. Vaughn Dyle, 310 Fernando, stated that he will be speaking as an arbitrator. He indicated that a number of years ago, an investment was made for $480,000 with the expectation that the investment would take off because other investors would come in and make money available. However, there was a change in the market, it did not take off, and there was a margin call for $1.6 million. He indicated that we have to assume that things might be a little slow and, in turn, there may be another margin call for $1 million in another year. Further, if things still did not work out and the investment did not bring in additional money, there might be another margin call for $1 million. He noted that the City will find itself with $3.6 million invested in a project that started out at $480,000. He suggested that Council look down the road and determine what they are willing to spend to have this happen. Bill Wren, Balboa Theater Director, stated that they are willing to put in $200,000 to help pay for the difference in the appraisal cost for the additional building. He indicated that having the property eliminates the need for a basement and would save them about $1.4 million. He stated that they found out from the Building Director that they can easily separate the building so the City can sell the remainder of it in order to recoup some money. He stated that he did not know there was any consideration of starting the project unless the building was self sustaining and, if something went wrong, the City would still have a marketable building. He believed that there is no value lost and there is no need to force the City into putting more money into the project. Council Member Adams stated that he met with Mr. Wren and Ms. Pettit last week to express the same concerns that Council Member Heffernan has. He indicated that he suggested that they generate a business plan to show how they plan to move forward. He stated that, based on the information they have, he does not feel comfortable and would like to see an update to the plan, what their fundraising goals are, and the next steps. Mr. Wren stated that the business plan that Council has did not include income because they could not determine how fast they would receive donations. He indicated that the economic portion is what they think the costs would be to carry them through the building process. He stated that they would be happy to provide Council with more information, but they would have to second guess the donation amounts. He added that the timing for the construction and its cost are correct if Council acquires the Orange Julius building. Council Member Adams stated that he would be more comfortable about this investment if he had various scenarios about different fundraising successes and what they do if they reach certain levels. He indicated that he Volume 55 - Page 7 City of Newport Beach Study Session Minutes February 26, 2002 10 ii7 would be willing to support this if he sees better evidence that this will work. He suggested that Council receive quarterly reports from the Board. Mr. Wren stated that they could do that and that Council is welcome to attend the meetings. He indicated that the City can also have a City representative on the Board. Mayor Ridgeway added that, as part of the business plan, he would like an estimate on how much it will cost to bring the theater to a shell exhibit because once it is a shell exhibit, the City has something marketable if they do not perform. Mr. Wren reported that they would need to raise $1.2 million to get it to that stage, but he will get these numbers to the City Manager. Council Member Glover expressed the opinion that the Board is better off not having a Council Member on it. She stated that she was on the Board for the Laguna Art Museum for three years and for the Orange County Museum, and that raising money was really tough for them even though they are established entities. In response to Council Member Glover's questions, Mr. Wren indicated that their budget will be about $635,000 /year once they are operational, but the net is less than that. He stated that they will still be in the negative about $150,000 /year. Council Member Glover noted that, when the operating budget for an art institution is over $300,000 /year, it gets more difficult to raise money. She indicated that she is interested in seeing how the new business person analyzes this since there is a direct correlation between the operating budget and donations. Mr. Wren stated that the job description for the business person is strong and that the theater realizes they are a business, not just a theater. He indicated that they will be bringing more people onboard at the correct stages of the theater. Mayor Pro Tem Bromberg encouraged Mr. Wren to provide a good business plan as soon as possible because this will need to come back as an action item. Further, he suggested that they meet with Council Members in the event they have concerns about the plan. Sue Cannon, Principal of Orange County Public Relation, stated that she has served as the publicist for the Balboa Theater for the past 5% years when it was a mere thought. She reported that they specialize in non -profit organizations in Orange County and has been doing this for about 20 years. She indicated that she is proud to say that the theater has accomplished hallmark fundraising techniques within a short period of time. She stated that, 2% years ago, as Founding President of the Divas they have been able to triple their net proceeds and also brought in over 130 members to the Guild. She indicated that everyone is vying for volunteer time and money. She believed that this exists because of the leadership that has been evident with this Board and its mission to recreate one of the oldest theaters in Orange County. She stated that they did have a hiccup, but are moving full steam ahead knowing that they have a lot of work to do. Ms. Cannon reported that part of their research when they started was to look at other theaters in Orange County, their plans, and how they started. She stated that all the theaters are asking for money, but no one thinks this can be done overnight or quickly. She indicated that she will do the research for the Board and will let Council know the statistics on how long it takes to actually open a theater. She believed that the theater is like the Laguna Playhouse because they are creating the theater from an old building. She Volume 55 - Page 8 City of Newport Beach Study Session Minutes February 26, 2002 4. that the fundraising efforts are way ahead Dick Ashoft, owner of Bubbles, stated that he lives in the Village and has a business there. He indicated that the City has the opportunity to buy a piece of land and if it does not purchase it, someone else will. He stated that he bought Bubbles for $740,000 three years and, at Christmas, Denny's offered him $1.5 million, but he turned it down. He expressed the opinion that the area is not doing well but thanked Council for cleaning it up because it will be beautiful when it is done. He indicated that urban developers told him that the only thing that will change the area is if there was a four hour venue. He believed that the City needs the theater and more things like it because it will attract people to the area for at least four hours. He emphasized that the price of the property will only increase, and stated that, if the theater is lost, at least the City can sell the property. Council Member Heffernan asked if this decision should be looked at relative to how the City is doing during the mid - budget year and projections for next year, and asked which fiscal year this will fall into. He noted that the City has some shortfalls that are pending. Mayor Ridgeway stated that some type of budget analysis should also be made part of the presentation if this goes to a closed session. Council Member Heffernan stated that the theater supporters should probably hear what the Administrative Services Director tells Council about the shortfalls so they understand that Council is not just being hard on them, but is facing a multi - million dollar shortfall. CITYWIDE WAYFINDING & DIRECTIONAL SIGNAGE PROGRAM- OVERVIEW OF PROPOSED PROJECT AND SCOPE OF PROFESSIONAL DESIGN SERVICES (contd. from 11/13/01). Assistant City Manager Wood reported that one of the recommendations from the Balboa Peninsula Planning Study in 1995 was to do a public signage program for the Peninsula. She stated that they brought a report to Council and staff was given the direction to try to implement a Citywide directional signage program. She added that this was backed by the Economic Development Committee (EDC) because their study on how to enhance the City's Transient Occupancy Tax recommended identifying ways to improve, coordinate, and simplify public and visitor signage throughout the City. She reported that this was brought to Council and, in 2000, Council identified $50,000 for the program. Ms. Wood stated that a Request for Proposals (RFP) was issued and five firms responded. She reported that Hunt Design and Associates is the firm that staff and the review committee (EDC members) felt would be best for the project. She indicated that this was presented to Council at the November 13, 2001, Council meeting. She stated that, following Council's concerns, Hunt Design removed using different icons for each district from the scope of services but still kept some type of identification for each district; removed the pedestrian mapping system in high tourist areas; included engineering services; and included requiring that the consultant have errors and omission insurance. She stated that, as a result of the revisions to the scope of work, the project cost is about $80,000, which is a reduction of $3,700 from the original project cost that was presented to Council. She indicated that Wayne Hunt, owner of Hunt Design, and John Temple, project manager, are present tonight. Volume 55 - Page 9 INDEX C -3495 Citywide Wayfinding and Directional Signage Program (38) City of Newport Beach Study Session Minutes February 26, 2002 INDEX John Temple, Hunt Design and Associates, stated that Council also had concerns about the aesthetic approach that they may take. He showed slides and reported that the Manual for Uniform Traffic Control Devices (MUTCD) is the guidebook for all highway signs, adding that The Irvine Company has been the de facto directional system for the City. Regarding the district identity signs, he stated that, although they are scaled well and the placement is good, they seem to be inconsistent and not every district is covered by them. He indicated that their approach would be to look at all the signs and come up with a systematic approach for dealing with all the various elements. He explained that the benefits of doing this include consistency and conformity with the MUTCD guidelines. He stated that by being consistent with all the messages, it reinforces the wayfinding for the driver who is trying to locate each district. Regarding building a civic identity, Mr. Temple stated that Beverly Hills has latched onto its identity which has become an icon for them. He reported that it is important to maintain the district identity; however, the look does not have to be overbearing. He noted that, for Sacramento's signs, color is the distinguishing factor between their district signs. He emphasized the ability to eliminate sign clutter by consolidating messages and simplifying the wayfinding. He added that creating a cross synergy between districts is also important so someone who is visiting one district will realize that there are other things to see in the City and make a trip to the other areas. Mr. Temple presented a matrix to describe where Newport Beach might lie relative to aesthetics and identity, communication and effectiveness, and the MUTCD guidelines. He explained that the City's signs may communicate and be effective, but it does not have much in terms of aesthetics and style. He stated that they are not sure how the City's signs would look, but believe they will communicate effectively and yet have some degree of style. He indicated that they would achieve this look by talking to user groups and staff, conducting historic research, and conducting extensive mockup testing to ensure they have the correct number of messages so drivers are not confused. Council Member Glover stated that one of Council Member Adams' points at the previous meeting was that "less is more ". She agreed that consistency and font are very important in signage, adding that she likes the signs to only have two colors. She stated that, even though there are several districts, there should be a way to connote that without having to change the fonts, etc. She emphasized that she does not want anything cutesy. Council Member Adams believed that this is on the right track and that he appreciates Hunt Design addressing some of his previous issues. He stated that he suspects that this effort is under budgeted and that he is skeptical that the City is going to get the product that Council expects for the fee they are charging. Mr. Temple stated that, if they accept the contract, they will be committing to delivering the product. He agreed that it is a little skinny but these are skinny days. He reported that similar projects for cities of this scale have similar budget ranges. He stated that, although he wished there were an additional 15% or 20 %, they have never not delivered. He reported that they tend to struggle with the meetings and delays, but 1/3 of their work is in this category and they seem to be completing the projects to their business satisfaction. Volume 55 - Page 10 City of Newport Beach Study Session Minutes February 26, 2002 Council Member Adams stated that he is alright with the course they are on, but suggested that Council see conceptual and final plans before Hunt Design hits the streets in order to be dialed into the review process. He reported that he has a problem with the Los Angeles icons because no one will know what they are until they are right on top of the signs because they are illegible. Mr. Temple reported that they have removed those icons. He explained that the icons are tied into the public mapping system and agreed that they are initially hard to see but will eventually be recognizable by the colors and shapes, and by the maps that the hotels provide visitors. Mayor Ridgeway expressed the opinion that Hunt Design is on the right track because the City needs a master, unified sign program. He stated that tonight's presentation was much simpler, cleaner, and more understandable. He noted that Council does not vote on study session items. Council Member Adams recommended that staff bring the contract back at the next meeting. John Cassidy, Conference and Visitors Bureau Executive Director, stated that his interest in this project is to help visitors enhance their visit to the City. He also agreed with keeping the sophisticated flavor of the City intact and noted that the opposite of wayfinding is disorientation. He believed that this is a very important project for the visitors; should reflect the true nature of the City; should be very legible, direct and to the point; and should enable the visitors to navigate and find things easily and with confidence. He stated that he especially likes the idea of eliminating the clutter as this would have many positive implications. He indicated that the signs should not be cartoonish, but should have some unifying thread. He added that this may keep some of the visitors out of the prominent neighborhoods and even enhance traffic flow. He recommended that Council endorse the project. Don Glasgow, Chair of the Corona del Mar Business District, complimented everyone for pulling this program together, as it is well overdue. He expressed his hope that the program reeks with quality and is unique. Further, he hopes that there is a program standing behind it to maintain the signs. Regarding identifying the various business districts, he reported that his committee a month ago decided to take on the monument issue in Corona del Mar to identify the business districts. He stated that, with Vision 2004, they are discussing doing something unique and special, not cute or unusual. He added that they unanimously voted to move forward on this over the next 12 months. He believed that they can coordinate very well with this program. He added that they want to be very involved with the monument signs because they are extremely important in giving the proper impression of Corona del Mar. He emphasized that their business district needs this now. Sherry Druery, Wilma's Patio Restaurant, stated that she is in favor of new signage because getting to Balboa Island can be confusing to visitors. She indicated that she is constantly giving directions and would love to see better signs, especially coming from the freeway. She believed that there is so much diversity within the City with Balboa Island, Lido Island, and the Balboa Peninsula. She stated that, unless you live here, it is very confusing. — None. Volume 55 - Page 11 10013 City of Newport Beach Study Session Minutes February 26, 2002 ADJOURNMENT - 5:50 p.m. The agenda for the Study Session was posted on February 20, 2002, at 3:45 p.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. City Clerk oW- 4,,tn X Recording Secretary i Mayor Volume 55 - Page 12 INDEX