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HomeMy WebLinkAbout09/10/2002 - Regular MeetingCITY OF NEWPORT BEACH City Council Minutes Regular Meeting September 10, 2002 - 7:00 p.m. — 4:00 p.m. CLOSED SESSION — None. A. RECESSED AND RECONVENED AT 7:00 P.M. FOR REGULAR MEETING B. ROLL CALL Present: Heffernan, O'Neil, Bromberg, Adams, Mayor Ridgeway Absent: Glover, Proctor (excused) C. CLOSED SESSION REPORT -None. D. PLEDGE OF ALLEGIANCE — Council Member Adams. E. INVOCATION — Chief Chaplain George B. Vogel, VA Medical Center of Long Beach. F. PRESENTATIONS Presentation of Donation of $150,000 from the Friends of the Library. Ed Reuscher, Treasurer of the Friends of the Library; Adele Mann, worker and former President of Friends of the Library; Patty Lillegraven, worker and former President of Friends of the Library; Darlene Gaetano, Assistant City Librarian; and Theresa Chase, Board of Library Trustee presented Council with a $150,000 check for the Newport Beach Public Library. Mr. Reuscher stated that the check is the donation for fiscal year 2001 -2002 and that this raises their donations since 1992 to $912,000. Mayor Ridgeway thanked them for their donation and for all the hard work that the Friends of the Library do. He announced that people can donate their old books to the library for resale. Mayor Pro Tern Bromberg stated that he took a tour of the library when he was first on Council and noted that the donation is better than what some small businesses bring in. Ms. Chase stated that, on behalf of the Board of Library Trustees, they are grateful for everything that the Friends do and reported that they were formed by a small group of volunteers in 1957 and now they have over 950 members. She also thanked the Friends for their $25,000 contribution for the new Mariner's Branch Library. Presentation by Edison for Energy Savings Project. Continued to the September 24, 2002, Council meeting. Proclamation declaring September 11, 2002, as a "Day of Remembrance ". Mayor Ridgeway read the proclamation. G. NOTICE TO THE PUBLIC Volume 55 - Page 367 INDEX City of Newport Beach City Council Minutes September 10, 2002 H. INDEX MEMBERS WOULD LIKE PLACED ON A FUTURE AGENDA FOR DISCUSSION. ACTION OR REPORT (NON- DISCUSSION ITEM): • Mayor Pro Tem Bromberg requested an update on two park issues, specifically regarding Upper Bayview. • Mayor Pro Tern Bromberg reported that a driver unintentionally crashed into one of the ferry docks on Balboa Island during Labor Day and injured 13 people. He commended the Police and Fire Departments for working in unison and for their high level of professionalism. • Council Member Heffernan suggested that, when Council narrows commission and committee appointments to two people, the nominees appear before Council for one minute to introduce themselves. • Mayor Ridgeway announced that the City will be having two September 11 tributes tomorrow. He indicated that the first tribute will be held at 5:30 a.m. in which the tall ships will be laying three wreaths off of Big Corona Beach. He stated that the City is also having a Patriot Day Tribute at noon in front of the City Hall flag pole. I. CONSENT CALENDAR City Clerk Harkless announced that an issue arose subsequent to the posting of the agenda (Item No. S23) that involved the resignation of Arts Commissioner Pam Nestande. She noted that the City is currently in the process of accepting applications for another vacancy on the Commission. She recommended that Council take action that the issue arose subsequent to the posting of the agenda and to include it on the Consent Calendar. She noted that this would take a majority vote since not all members of Council are present tonight. Motion by Council Member Adams to add Item No. 823 to the Consent Calendar. The motion carried by the following roll call vote: Ayes: Heffernan, O'Neil, Bromberg, Adams, Mayor Ridgeway Noes: None Abstain: None Absent: Glover, Proctor READING OF MINUTESIORDINANCES AND RESOLUTIONS 1. MINUTES OF THE ADJOURNED REGULAR AND REGULAR MEETING OF AUGUST 27, 2002. Waive reading of subject minutes, approve as written and order filed. 2. READING OF ORDINANCES AND RESOLUTIONS. Waive reading in full of all ordinances and resolutions under consideration, and direct City Clerk to read by title only. Volume 55 - Page 368 City of Newport Beach City Council Minutes September 10, 2002 INDEX ORDINANCES FOR INTRODUCTION 3. Removed at the request of an audience member. CONTRACTS AND AGREEMENTS 4. CONSTRUCTION SUPPORT SERVICES WITH PRO SOURCE, INC. C -3515 - APPROVAL OF AMENDMENT NO. 2 TO THE PROFESSIONAL Construction SERVICES AGREEMENT. Approve Amendment No. 2 to the Support Professional Services Agreement for construction services with Pro Source, Services Inc. in the amount of $27,000. (38) 5. CORONA DEL MAR STATE BEACH IMPROVEMENTS (C -3461) — C -3461 PROFESSIONAL SERVICES AGREEMENT FOR ARCHITECTURAL Corona del Mar SERVICES. Approve a Professional Services Agreement with Robbins State Beach Jorgensen Christopher Architects (RJCA) in the amount of $111,670 and Improvements authorize the Mayor and the City Clerk to execute the Agreement. (38) 6. OCEAN PIERS REHABILITATION (C -3312) — COMPLETION AND C -3312 ACCEPTANCE. 1) Accept the work; 2) authorize the City Clerk to file a Ocean Piers Notice of Completion; 3) authorize the City Clerk to release the Labor and Rehabilitation Materials bond 35 days after the Notice of Completion has been recorded in (38) accordance with applicable portions of the Civil Code; and 4) release the Faithful Performance Bond 1 year after Council acceptance. 7. Removed at the request of an audience member. 8. AWARD OF LANDSCAPE MAINTENANCE CONTRACT C -3569 AGREEMENT FOR NEWPORT COAST PUBLIC AREAS. Approve the Landscape agreement with Park Landscape Maintenance, Inc. to provide landscape Maintenance for maintenance of City medians and roadside areas in the Newport Coast Newport Coast area effective October 1, 2002 at an annual cost of $78,237. (38) MISCELLANEOUS ACTIONS 9. REQUEST FOR BUDGET AMENDMENT. Approve a City Council BA -006 Budget Amendment (BA -006) appropriating $15,861.40 from Overtime and unappropriated General Fund reserves to provide for overtime and night Night Differential differential expenses incurred by Library and Recreation employees. Expenses (40/66) 10. BUDGET AMENDMENT TO EXPAND THE DEPARTMENTS BA -008 EFFORTS IN INSPECTING FUEL MODIFICATION AREAS IN Fuel Modification NEWPORT COAST. Authorize a budget amendment (BA -008) Inspections in transferring $40,000 from General Fund revenues to account 01- 2330 -8050, Newport Coast to fund the expanded efforts of the Fire Department to survey fuel (40/41) modification areas in Newport Coast. 11. WATER QUALITY EDUCATION. 1) Authorize City staff, under the BA -009 direction of the Coastal/Bay Water Quality Committee, to develop and Water Quality implement three water quality education efforts as follows: a) a public Education awareness campaign directing people to a web site; b) a water quality (40/51) video; and c) the 3�d year of the partnership for Clean Water (5th grade education program); and 2) approve a budget amendment (BA -009) in the amount of $25,000 to fund the three efforts, as needed. Volume 55 - Page 369 City of Newport Beach City Council Minutes September 10, 2002 J. 12. BUDGET AMENDMENT TO INCREASE REVENUE ESTIMATES AND EXPENDITURE APPROPRIATIONS DUE TO THE RECEIPT OF A GIFT FROM THE NEWPORT BEACH FRIENDS OF THE LIBRARY. Approve BA -010 in the amount of $150,000. 13. REVISIONS TO SECTION H OF THE CITY OF NEWPORT COUNCIL POLICY MANUAL. Approve revisions to Policies H -1 (Harbor Permit Policy) and H -4 (Dory Fishermen's Fleet). 14. Removed at the request of staff. 523. UNSCHEDULED VACANCY ON THE CITY ARTS COMMISSION. 1) Accept the resignation of Pamela Nestande from the City Arts Commission effective September 10, 2002 (term expires June 30, 2005) and declare the position vacant; and 2) direct the City Clerk to include the filling of this vacancy with the recruitment process currently in progress to fill the seat recently vacated by Jeff Gould. Motion by Mayor Pro Tern Brombere to approve the Consent Calendar, except for those items removed (3, 7, and 14). The motion carried by the following roll call vote: Ayes: Heffernan, O'Neil, Bromberg, Adams, Mayor Ridgeway Noes: None Abstain: None Absent: Glover, Proctor ITEMS REMOVED FROM THE CONSENT CALENDAR 3. AMENDMENTS TO TITLE 17 OF THE NEWPORT BEACH MUNICIPAL CODE DEALING WITH HARBOR REGULATIONS, ADMINISTRATION AND CONSTRUCTION IN NEWPORT HARBOR. Jim Hildreth noted that there are many changes being proposed to Title 17 and believed that the City needs to uphold the code first before it changes anything. He referenced Section 17.08.025 and stated that he has been asking for documents but they have not been released to him and that failure to maintain these files and records is a misdemeanor. He stated that the City Manager received a 20% salary increase and assumed that it is in anticipation for him to pay the fines. He reviewed the history of the Harbor Resources Department. He indicated that the staff report proposes to have the City Manager's office relinquish its duties and give it to the Harbor Resources Department. He believed that this needs to be rechecked and that the department be audited before anything changes. He submitted his correspondence which is on file in the City Clerk's office. He added that it is a requirement under State law that these documents that have been maintained by the City be released and noted that this is also a misdemeanor. He stated that he would like to have staff stop violating the law and insisted that they do what is required by law. Mr. Hildreth stated that the Marine Director is also in charge of all permit issues, which does not state anything about moorings. He indicated that the City has never had the location for J.M. Hildreth classified as a Volume 55 - Page 370 I IN 1) BA -010 Newport Beach Friends of the Library Gift (40/50) Council Policies H -1 and H -4 (51/69) City Arts Commission (24) Ord 2002 -18 Regulations, Administration, and Construction in Newport Harbor (51) City of Newport Beach City Council Minutes September 10, 2002 INDEX mooring, believing that it is a pier permit location, and that Harbor Permit 801001 was issued as a pier permit. He noted that Harbor Permit 801001 was changed to RP80100011 but is still a pier permit. Motion by Mayor Pro Tem Bromberg to introduce Ordinance No. 2002 -18 amending Title 17 of the NBMC and pass to second reading on September 24, 2002. The motion carried by the following roll call vote: Ayes: Heffernan, O'Neil, Bromberg, Adams, Mayor Ridgeway Noes: None Abstain: None Absent: Glover, Proctor T. JAMBOREE ROAD RECLASSIFICATION STUDY — C -3568 PROFESSIONAL SERVICES AGREEMENT WITH AUSTIN -FOUST BA -011 ASSOCIATES. Jamboree Road Reclassification Charles Griffin, 732 Bison Avenue, stated that he is opposed to further Study development of Jamboree Road. He indicated that the homes in Eastbluff (38140) back up very close to Jamboree Road, as does One Ford Road. Mayor Ridgeway stated that the study supports his position. Mr. Griffin encouraged Council to carry -out the study. City Attorney Burnham reported that Recital B of the agreement should read, "City is considering the reclassification of Jamboree Road..." so the City does not commit itself too early in the process. Council Member Adams recommended that the scope of services be amended to include an examination of the removal of the proposed direct - connector from northbound Jamboree Road to the northbound 73 Freeway, and look at the potential elimination of the proposed grade separation at Jamboree Road and MacArthur Boulevard. Motion by Council Member Adams to 1) approve a Professional Services Agreement with Austin -Foust Associates (AFA) in the amount of $32,500, with changes to the scope of services and change to the recitals, and authorize the Mayor and the City Clerk to execute the agreement; and 2) approve a budget amendment (BA -011) appropriating $2,500 to Account No. 7014- C5200701 from the unappropriated General Fund balance. The motion carried by the following roll call vote: Ayes: Heffernan, O'Neil, Bromberg, Adams, Mayor Ridgeway Noes: None Abstain: None Absent: Glover, Proctor 14. WORKERS COMPENSATION (WC) EXCESS INSURANCE Workers RENEWAL. Compensation Excess Insurance City Manager Bludau reported that information was received from Marsh (47) and provided to Council regarding quotes that were received yesterday. Volume 55 - Page 371 City of Newport Beach City Council Minutes September 10, 2002 INDEX Mayor Ridgeway stated that he received Marsh's letter tonight, but has not read it. Risk Manager Farley reported that the staff report provides background information on the claims history, history of the marketplace, and what they believe was their best recommendation. She pointed out that the frequency of claims and severity of claims guide excess renewal. She stated that the City has more of an issue with frequency than severity and noted that, since 1993, the City has had about five claims that exceeded $500,000. She reported that the current coverage has a self - insured retention (SIR) of $350,000 for miscellaneous employees; the quotes in the report show a minimum of $500,000; and show a breakout of $750,000 for Police and Fire. She utilized an overhead to compare the carriers' quotes. She noted that Marsh provided additional quotes yesterday and that their quotes bring down the SIR from $750,000 for Police and Fire to $700,000, and provides an additional quote of $400,000 for miscellaneous employees. She reported that the significance of the SIR limit means that the City has to fund the amount before excess insurance will pay. She stated that the City has 120 to 126 Police and Fire claims, it receives about 165 workers compensation claims a year, and has an open claim history of 265 claims. Ms. Farley stated that the coverage limit is between $25 million and $50 million for statutory requirements that the City is obligated by law to pay. She noted that the expiring policy has statutory limits, but this was not provided to the City in any of the quotes received this year. She reported that the difference between the Marsh and CalSurance quotes is the higher limit of $50 million. She stated that, in talking with the City's actuary and looking at the loss history and lost projections, he indicated that the City is going to need to self insure the difference. Ms. Farley highlighted the differences between the premium quotes and the additional options that Marsh provided yesterday. Mayor Ridgeway noted that, in the Marsh quotes, the minimum SIR is $700,000 for Police and Fire, but CalSurance proposes $500,000 for Police and Fire. Mr. Bludau stated that the quotes are a trade -off and that Council needs to consider where the risks are for the City. He asked if it is better to have $25 million for the workers' compensation limit. He indicated that the trade -off for that is having a SIR for Police and Fire of $500,000. He also asked if it is better to have a limit of $50 million with a Police and Fire SIR of $750,000. Noting that staff will not be proven right or wrong until the end of the year, he stated that staff believes that the City has a greater risk potential for Police and Fire to exceed $500,000 than to go to the limit above $25 million. In response to Council Member Adams' questions, Ms. Farley clarified that the SIR is per occurrence. She reiterated that, since 1993, the City has received one claim that is close to $425,000; two claims that have reserves Of $800,000; and one claim that was $600,000. She stated that, of those claims, two came from Police and one from Fire. Mr. Bludau indicated that the City has not had a single event that would exceed the $25 million limit. In response to Mayor Ridgeway's question regarding the average size of a claim, Ms. Farley stated that, if the claim was an indemnity claim, it could Volume 55 - Page 372 City of Newport Beach City Council Minutes September 10, 2002 ff 1N run about $125,000 to $170,000, depending on the injury. Noting that the City only had 126 claims, Mayor Ridgeway indicated that the City is looking at $126 million of liability. Ms. Farley clarified that the average claim for disability benefits could be around that range; however, the medical only claims could just run the City $1,000 to $1,500. Council Member O'Neil stated that it seems to him that this is a matter that involves a lot of professional analysis and input. He indicated that he does not feel very qualified in evaluating what the coverage should be for the City under these circumstances. Motion by Council Member O'Neil to approve the renewal of the excess workers compensation insurance coverage with a self- insured retention (SIR) of $500,000 with the options in coverage limits and premiums outlined in the staff report for FY 2002 -03. Mr. Bludau stated that, since there was additional options provided after the agenda went out, he wanted to bring it to Council's attention to have the opportunity for discussion. Mayor Pro Tem Bromberg asked if it makes sense for the City to consider being completely permissibly self - insured considering the high retention and considering that workers' compensation payouts are by schedule and set by statutes. Mr. Bludau stated that the prospects of doing this would scare him. He noted that the workers' compensation SIR for this year was $350,000, and that the market has really changed in part by September 11 and all the losses companies received. He indicated that it is his understanding that most cities do not have $25 million for its workers' compensation limit. Regarding becoming self - insured, he stated that it is a risk and, as a city manager, he would feel more comfortable having a lid on the total expenditures per person. Council Member Heffernan asked what was paid out in the most current fiscal year for SIR. Ms. Farley reported that the City budgeted $1.7 million, projected paying $1.6 million, and the current budget is $1.8 million for this fiscal year. She reiterated that the City receives an average of 160 claims /year and has an open claim history of 265 claims. She reported that last year's premium was $66,000. She confirmed that this was competitively bid by three brokers (Marsh, CalSurance, and Driver Alliance — Attachment A). Mayor Ridgeway noted that all insurance across the board has gone up 100 %. Mr. Bludau stated that he is not sure if they have seen the Police and Fire breakdowns before. Ms. Farley confirmed that the distinction in the SIR limits have not been seen before this year. Jim Hildreth, The Grand Canal, stated that his brother broke his back when he fell off a ladder and it took almost seven years to get a settlement from workers' compensation. He believed that the City should care about its employees more. He stated that the City's liability insurance is together with Huntington Beach and Costa Mesa and asked if workers' compensation can also work this way. Council Member O'Neil emphasized that they care a great deal about the employees, respect them, and provide compensation and benefits. Volume 55 - Page 373 City of Newport Beach City Council Minutes September 10, 2002 INDEX Jean Macino, 2465 Marino Drive, stated that she is a resident and the Managing Director of Marsh which is located in the City. Referencing the ferry accident on Labor Day, she noted that the $25 million limit would not cover the cost of injuries if the elderly lady had run into 13 Police, Fire, or other City employees. She cautioned Council that the City is moving from an insurance policy limit which gives the City unlimited coverage to having a cap on a $25 million limit. She believed that the City is putting too much attention on the SIR. She stated that you buy insurance for catastrophic exposures. She indicated that, if City Hall were to be bombed, have a terrorist threat, or have a massive fire, the $25 million would not be able to take care of the employees. She requested that the $50 million be considered and believed that this amount is not enough. She stated that the City could fund the extra money and with the proper claims advocacy, which they provide, the City could contain the claims. She expressed the opinion that the best option was not even discussed tonight (Option 5). Peter Junker, 23412 Pacific Park Drive, Vice President of the Newport Beach Marsh Office, stated that he has over 30 years experience in insurance and risk management; graduated from the College of Insurance in New York with a degree in actuarial science; and worked at a risk management consulting firm. He indicated that the question of how much is enough always comes up and reported that they never tell anyone to only buy $25 million in workers' compensation limit, but to buy as much protection as possible. He stated that the general rule in insurance is to fund for the catastrophe and you self insure the smaller, more predictable losses to try to manage them. He added that he does not know of an actuary who would recommend that you not buy as much workers' compensation protection as possible. He noted that the City only received three claims over $500,000 in 1995 and none since. However, since 1995, the City received four claims between $345,000 and $387,000 which are still open and could exceed $400,000. He stated that two of the claims are from Police and Fire, and the other two are from miscellaneous employees. He believed that it is equally likely that any employee could have a large loss. He noted that Option 5 has an SIR of $400,000, which is lower than the recommended $500,000. He stated that it is conceivable that the extra money that might be paid for Police and Fire might be washed out by the extra money paid for miscellaneous employees. He asked if the City wants $50 million in limits for an additional $20,000 premium, whereas the recommended option costs $193,000 for only a $25 million limit for a $500,000 retention across the board. Mayor Pro Tom Bromberg took issue with Ms. Macino's extreme examples and tactics. He believed she was not speaking as a citizen of the City but as someone who makes a commission from the premium. He also took issue that the premiums have tripled over the year and that it does not make it right even if all the other brokers are doing it. Council Member Adams asked if staff has had adequate time to look at the new options, noting that Option 3's premium is less than CalSurance's. Additionally, it gives the City a $50 million limit versus $25 million, the premium is less, and the difference between the $500,000 and $700,000 is not going to make a difference based on the City's history. Mr. Bludau stated that the difference in the premiums really does not matter that much. Mayor Ridgeway noted that the City has to take the lowest bid on Volume 55 - Page 374 City of Newport Beach City Council Minutes September 10, 2002 Public Works projects and pointed out that there is a dollar difference between the premiums. Mr. Bludau indicated that Options 2 and 3 are the same with the exception of the workers' compensation limit. He stated that the insurance industry only sees a risk that is priced at $10,000, which means that you can double your insurance limit for only $10,000. He emphasized that none of the other insurance companies would come in with a $500,000 SIR for Police and Fire because the risk was too great. Council Member Adams agreed that the City will be paying almost all of the claims itself but, for relatively a little more money, the City could double the coverage to protect itself from a catastrophe. Mr. Bludau stated that, if the City has either a $700,000 or $750,000 SIR for Police and Fire, it will cost the City an additional $250,000 in order to save the difference in premium costs, since CalSurance's SIR is $500,000 for Police and Fire. He stated that this is the trade off in terms of where the risk is. Council Member Heffernan stated that he agrees with Ms. Macino, but that it is the upper limit that he is concerned about rather than the retention amount. He believed that the high priced option gets the City a better carrier with an XV rating, rather than an X rating. He stated that he would take the risk at the retention amount to have the higher coverage limits at the top end. He added that, as a public entity and to preserve the reserves, this is where the City could potentially get hit. He indicated that the claims show that the City might have hits in the SIR, but believed that the City is trying to buy catastrophic coverage rather than primary coverage. He stated that he assumes staff surveyed the market and all the rates have tripled. He indicated that it is a question of whether the City will save money on the retention level or try to get the big umbrella at the aggregate limit level. In response to Mayor Ridgeway's question, Ms. Macino confirmed that Options 1 to 5 are from Hartford. She added that, if a Police Officer's injuries cost the City more than $500,000, an extra $200,000 would not bankrupt the City. She indicated that the City could fund for it now and maybe it will not need to use it. However, if there was a catastrophe at City Hall, the City could exceed the $25 million and possibly look at a $40 million to $50 million claim, which would devastate the City. Mark Zahoryin, CalSurance, stated that he is the current broker for the City, has been the City's broker for 15 years, with CalSurance for over 19'/ years, and in the industry for about 25 years. He clarified that CalSurance's rating is A++XV. Regarding the employer's liability limit, he pointed out that the limit is $1 million per occurrence; however, under the Hartford option, it is $1 million per occurrence with an aggregate of $1 million. He noted that most liability carriers require $1 million per accident. He stated that he is not an actuary, but when they fast came to the City and proposed how they were going to market this year, budgets were discussed and statutory limits were not available. He noted that they indicated that they were going to try to come in with the highest limits that they could, adding that they felt obtaining $25 million was going to be the maximum level. He stated that he did not have major concerns indicated to him at that time. He pointed out that they came in with their best quote, but Hartford had the option to come in with an additional quote after they knew CalSurance's numbers. He noted that they have been around for 40 years, but Hartford has been in the reinsurance business for Volume 55 - Page 375 City of Newport Beach City Council Minutes September 10, 2002 INDEX excess workers' compensation in California for only four years. He indicated that he could go to the carrier and ask them to adjust their numbers if $15,000 will make a difference to the City. In response to Council questions, Mr. Zahoryin stated that he was asked by staff after they received the quote to increase the limit from $25 million to $50 million. He indicated that he told staff that Employers Reinsurance Corporation (ERC) cannot offer limits greater than $25 million because of reinsurance. He stated that he is comfortable with the limit, otherwise he would not have recommended it. Council Member Adams asked, based on the City's experience, if the $1 million aggregate is problematic. Mr. Bludau stated that it is not problematic, and added that it is also not problematic that $25 million or $50 million is enough. Rett Smart stated that he works with CalSurance and helps them to provide the quotes from ERC. He noted that the City has had Police and Fire losses in excess of $500,000. He reported that, because of the exclusive remedy laws in California and increases in benefits, a fireman who may have worked for the City ten years ago who developed emphysema due to a smoking habit could come back to the City believing they could be compensated under the City's policy. He indicated that all the companies are dealing with these types of issues. He stated that one of the reasons Hartford is set on high limits for Police and Fire is because they understand, if three firefighters get severe burns, a month in a burn unit can put them above $500,000. He noted that the City's third party claims adjuster ( Hazelrigg), who the City has just entered into a two year contract with, is not on Hartford's list of approved third party claims administrators. He stated that Hazelrigg would have to go through an audit process to get onto their approved list before Hartford would consider them bound. He indicated that he understands the City's concerns over the losses between $350,000 and $1 million. He believed that this is where Council's concern should be versus having a $50 million limit. Alan Troop, Executive Vice President of CalSurance, stated that he has been in the insurance business for 40 years and headed up one of the largest risk management actual consulting firms. He added that he is a resident of the City but is not speaking as a citizen, but as a broker. He stated that their job is to provide the City with the best advice and best program consistent with the facts available to them. He agreed that he could engage in speculation about what major catastrophe could befall the City, but the real issue is, given the history of the City, that the program is consistent with the City's goals. He stated that they could have looked at other options from other companies, but he believes they came to the City with the best option for the relationship that has been established since 1995. In response to Mayor Pro Tern Bromberg's question, Mr. Bludau stated that it is staffs recommendation that the City stay with CalSurance. The motion carried by the following roll call vote: Volume 55 - Page 376 City of Newport Beach City Council Minutes September 10, 2002 K. Ayes: Heffernan, O'Neil, Bromberg, Adams, Mayor Ridgeway Noes: None Abstain: None Absent: Glover, Proctor John Lightburn, Committee to Abolish Helicopter Noise, P.O. Box 8008, stated that he would rather say "abate" than "abolish ". He indicated that he previously requested financial information and thanked the City for giving it to them. He stated that, since his last visit, he looked at the Municipal Code and General Plan. He noted that the noise element of the General Plan discusses sleep interference as a major noise concern; and Chapters 10.26 and 10.28 of the Municipal Code discusses noise control and abatement. He believed that helicopter flyovers are being conducted in a manner that creates a nuisance and that they want to seek a process in which the committee can work with the City to resolve this. Charles Griffin, 732 Bison Avenue, reported that the State Assembly and Senate have passed AB 2333 which calls for environmental justice in the region and distributing the adverse impacts from aircrafts throughout the region, taking into account minorities and low income people. He noted that no one would be impacted by aircraft operations if there was an airport at E1 Toro. He encouraged everyone to support AB 2333 and requested that the Governor sign the bill. He added that Measure B, that was put on the ballot by the Board of Supervisors, requests that the Navy not transfer the property until it is cleaned up. He indicated that he wrote the proponents' argument as a non - binding addendum to the Measure which also states that the Navy should immediately operate the airport in a lease agreement with Los Angeles World Airways to help pay for the clean up. He provided Council with a copy of the November ballot statement. Stephanie Barger, 503'/2 Larkspur, Executive Director of the Earth Resource Foundation, announced that Inner Coastal Clean Up Day is September 21 and provided Council with packets. She reported that Inner Coastal Clean Up Day was set up six years ago by Trails For All and is a collaboration with Coastal Clean Up Day. She indicated that it is set up so trash can be picked up before it reaches the beach. She encouraged the public and City to join them either at Brookhurst or at Victoria Pond at the end of 191h Street. She noted that they provide gloves, trash bags, t- shirts, and water. She reported that their website is www.earthresource.org and registration starts at 8:30 a.m. Philip Bettencourt, 110 Newport Center Drive, stated that he is speaking on behalf of the Building Industry Association (BIA) and reported that they have raised more than $9.8 million in relief funds that were distributed, not only to families in New York, but also to victims in Washington D.C. and the volunteer fire departments in Somerset County, Pennsylvania. He indicated that this is in addition to their continued support for the Police, Fire, and Marine Safety employees, and the City's efforts in its defense of the homeland. Volume 55 - Page 377 INDEX City of Newport Beach City Council Minutes September 10, 2002 INDEX Jan Vandersloot, Balboa Arbor Society, stated that it is fiction about the extent the City has faced in liability due to damages caused by the roots from the Main Street ficus trees, pointing out that one of the exhibits the City submitted to the court stated that there had been three claims in the past five years that total $517.75. He added that one of their members surveyed the merchants on Main Street and concluded that only 3 of 13 merchants had plumbing problems. He emphasized that the amount of damage that the ficus trees have caused have not been substantial and could be dealt with. He urged the City to consider sitting down again with the Balboa Arbor Society because there could be a settlement reached. Lynn Miller stated that she is a resident of the Balboa Peninsula and a member of the Balboa Arbor Society. She read a letter she sent to the Daily Pilot which generally states that the history of the Balboa Peninsula, buildings, and sewer lines date back to the early 1900s. She indicated that, according to the Utilities Department, the replacement in the 1980s and 1990s of main and lateral sewer lines revealed that the original pipes were not cracked or broken by the ficus trees that are designated special trees. She added that the original pipes were used as tunnels to run PVC pipes, but the cement disintegrated, allowing raw sewage to flow into the surrounding ground. She indicated that the lifespan of cement in this type of environment is 20 years, which means that the sewer lines have gone over the replacement deadline by 50 years. She stated that it was also discovered that the fiscus tree roots, some as thin as hair to about 1 -inch thick, had been attracted to the spills and were able to enter the pipes at the open joints. She reported that, since the areas were replaced by the new PVC sewer lines, there had not been any problems. She noted that the private and City sewer lines were installed at the same time, which means that in the areas where the cement has not been replaced, the cement has also disintegrated. She stated that these areas could be tested and leaks can be detected. She added that another sign of leakage is that sea water is present. She reported that the only businesses on Main Street complaining of sewer problems were several restaurants and a hotel which has a restaurant. She believed that grease has entered the restaurants' sewer lines and that paper towels, disposable diapers, and sanitary napkins entered the sewer lines in the public restrooms. She indicated that, by law, restaurants are shut down if they leak sewage or if it is backing up into the buildings. She believed that the solution is to replace all the old sewer lines with new PVC lines. She stated that root pruning needs to be initiated with root barriers installed, the sewer pipes should be wrapped with a root repelling material, and chemicals should be emptied into the drains to kill and repel roots. Jim Hildreth, The Grand Canal, stated that he has asked for documents and submitted letters dated February 1, 2001, March 13, 2001, and July 26, 2001, that are on file in the City Clerk's office. He indicated that the permit files were out of the office being microfilmed and, once the City receives them back, they were going to be sent to him. Further, Harbor Resources Director Melum had them in his office prior to them being taken out of his office, stating that a P.O. Box was missed and should have been classified as a service address for 1411 Bayfront Avenue North. He noted that Assistant City Manager Kiffs letter indicated that he would forward documentation when they receive it back from the service if it is part of the microfilming request. Further, another letter states that all the records he Volume 55 - Page 378 City of Newport Beach City Council Minutes September 10, 2002 INDEX has requested were in their possession. He stated that the records once existed but suddenly they are not in the City's possession. He asked that his letter regarding Residential Pier (RP) 80100011 also be kept on record. Mr. Hildreth stated that the City acquired the structure location at the southwest end of the Grand Canal under the Public Domain Act and Public Works Director Badum determined that the structure was not a legitimate structure. He believed that this means that the City has acknowledged that they no longer wish to have public access at that location. He stated that the City needs to follow its guidelines, noting that Council is changing over the requirements. He indicated that, if they are not willing to do their job, he is sure they can find someone else who is willing to do their job. He noted that the City is going to hand over the requirements to look over mooring locations to the Harbor Commission which is self appointed. City Manager Bludau reported that Mr. Hildreth was sent a letter over a year ago stating that he had already obtained copies of all the records that the City had, with the exception that there were some records being microfilmed. After the City received the results of the microfilming, he stated that Mr. Hildreth was sent a letter stating that there were no records pertaining to his issue that were being microfilmed. He noted that Mr. Hildreth can come before Council for the next 60 years requesting records, but the answer will be the same for the next 60 years that he has been given all of the City records in our possession. Council Member Heffernan requested that Mr. Hildreth provide a simple sentence of what his objective is before he starts speaking. Linda Grant, President of the Balboa Arbor Society, stated that they entered into an agreement to meet with the City to try to find a solution regarding the ficus trees. She indicated that they did not breach their agreement and they did not speak to the press; however, Mayor Ridgeway broke the agreement when he spoke to the press. She stated that they love their trees and still want to find a way to work with the City to keep them and still beautify the City. She indicated that they found many solutions for the trees and hope that the City will look at them. She pointed out that everyone agreed that the arborists would decide and noted that three arborists determined that the trees could be saved. Mayor Ridgeway reported that he spent an entire day in arbitration and staff spent two additional days in arbitration. He indicated that numerous solutions were brought to the table by the City, but they were all rejected. Gabe Green, 310 Fernando, sang a ficus tree song to the tune of "Cops I Did It Again ". He also sang a song that he wrote, called "United We Stand ", which he dedicated to the firefighters and policemen that served heroically on September 11. Bud Grant, 310 Fernando, stated that Mr. Green's song was also from the Balboa Arbor Society. L. ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES Council Member Adams noted that the Ad Hoc General Plan Update Committee did not meet this week. Volume 55 - Page 379 City of Newport Beach City Council Minutes September 10, 2002 lull • Mayor Pro Tem Bromberg reported that the Aviation Committee will meet on September 23 at 5:00 p.m. at the Central Library Friends Room. • Council Member Heffernan announced that the Telecommunications Committee will meet September 13 in the Chambers at 10:00 a.m. to receive industry input relative to the telecommunications ordinance. • Council Member Heffernan reported that the Newport Coast Advisory Committee has been meeting and there has been an effort by the Committee and the City to define the details of the annexation. • Mayor Ridgeway stated that he chairs the Coastal/Bay Water Quality Citizens Advisory Committee and that they will meet at 3:00 p.m. on September 12 at the Harbor Patrol Station. PLANNING COMMISSION AGENDA AND ORAL STATUS REPORT 15. PLANNING COMMISSION AGENDA FOR 5, 2002. Planning Director Temple reported that Items 3 and 4 were continued to the next meeting. She stated that Item 1 was for a use permit for a retail wine store with wine tasting. She indicated that the item was approved. Ms. Temple reported that there was lengthy discussion about the temple proposed by the Church of Jesus Christ of Latter Day Saints (Item 2). She stated that the purpose of the meeting was to receive public testimony and added that, due to additional noticing required by the California Environmental Quality Act (CEQA) for the Environmental Impact Report (EIR), the Planning Commission cannot take final action on the certification until October 3. She reported that the Commission continued the item to October 3. Ms. Temple indicated that the tone of the meeting was very respectful and noted that, mid- afternoon on Wednesday, it came to their attention that they may have a crowd beyond the capacity of the Chambers. She stated that the Planning, Fire, General Services, City Clerk, and City Manager's offices created accommodations to keep fire access in the Chambers and ensure that the individuals outside the Chambers could hear the proceedings. She stated that all the departments immediately pitched in without hesitation to get the job done in a short period of time and showed the City well in the eyes of the people who attended the meeting. Ms. Temple reported that the significant issues by the opponents of the project were the height of the steeple and the lighting plan, particularly the lighting of the steeple. Additionally, adequacy of parking, traffic, and other issues were discussed. She noted that the meeting started at 6:30 p.m. and ended at midnight. Mayor Pro Tern Bromberg stated that he attended the meeting, along with Council Member Heffernan, because the issue falls in both of their districts. He commended Planning Chairman Kiser who ran the meeting which had about 250 people in attendance. He indicated that, following the meeting, he received telephone calls from people on both sides of the issue. Volume 55 - Page 380 INDEX Planning (6S) City of Newport Beach City Council Minutes September 10, 2002 He encouraged everyone to participate meeting on this issue will be held October 3. that the next In response to Council Member Heffernan's questions, Ms. Temple confirmed that staff prepared a detailed report of the hearing, but has not prepared resolutions, findings, or conditions for approval. She reported that staff feels that a shorter steeple could meet the objectives of the applicant. She reported that they suggested that the steeple be 100' tall on the basis that the temple was a more important ceremonial building than the Stake Center and should be somewhat higher. She added that, combined with the visibility needs identified by the church, staff came up with 100' versus 123' 9" as proposed by the applicant. She stated that the staff report is available on the City's website under News & Events. Council Member Heffernan stated that Council has been receiving a lot of emails on this and encouraged people to keep emailing their opinions. He noted that some of the emails are coming from outside the City since the temple is supposed to serve a larger area. N. PUBLIC HEARINGS 16. ADOPTION OF THE 2002 NEWPORT BEACH FIRE CODES. Mayor Ridgeway reported that Council received a presentation at the study session by Fire Chief Riley and Fire Marshal Lockard. Mayor Ridgeway opened the public hearing. Hearing no public testimony, Mayor Ridgeway closed the public hearing. Motion by Council Member O'Neil to introduce Ordinance No. 2002 -19 to adopt the 2001 California Fire Code (Title 24, Part 9), with amendments, as part of the Newport Beach Municipal Code; and pass to second reading on September 24, 2002. The motion carried by the following roll call vote: Ayes: Heffernan, O'Neil, Bromberg, Adams, Mayor Ridgeway Noes: None Abstain: None Absent: Glover, Proctor 17. ADOPTION OF THE 2002 NEWPORT BEACH BUILDING CODES. Mayor Ridgeway reported that Council received a presentation at the study session by Building Director Elbettar. Mayor Ridgeway opened the public hearing. Hearing no public testimony, Mayor Ridgeway closed the public hearing. Motion by Council Member O'Neil to introduce Ordinance No. 2002 -20 to adopt the 2001 California Building Code; and pass to second reading on September 24, 2002. The motion carried by the following roll call vote: Volume 55 - Page 381 INDEX Ord 2002 -19 2002 Newport Beach Fire Codes (41) Ord 2002 -20 2002 Newport Beach Building Codes (26) City of Newport Beach City Council Minutes September 10, 2002 INDEX Ayes: Heffernan, O'Neil, Bromberg, Adams, Mayor Ridgeway Noes: None Abstain: None Absent: Glover, Proctor 18. TEMPORARY REAL ESTATE SIGNS — A REQUEST TO AMEND Ord 2002 -21 ZONING CODE CHAPTER 20.67 — SIGNS, TO ALLOW THE PA2002 -128/ ADDITION OF A SINGLE "RIDER" SIGN AND A SINGLE Code Amendment "BROCHURE BOX" PER PROPERTY IN CONJUNCTION WITH AN 2002 -004/ AUTHORIZED TEMPORARY REAL ESTATE SIGN [CODE Temporary AMENDMENT NO. 2002 -004 (PA2002- 128)]. Real Estate Signs Planning Director Temple stated that the Planning Commission considered (68) this issue a month ago and reported that the motion to approve the amendment failed due to a 3 -3 vote. She indicated that the Commission did not think that the rider sign was a helpful sign for the public and felt that the brochure boxes had the possibility of creating additional litter. She stated that this request originated from a letter by the Newport Beach Association of Realtors to Mayor Ridgeway, and was then referred to the Planning Department for preparation of the code amendments. She displayed a rider sign and brochure box. Mayor Pro Tem Bromberg believed that realtors work very hard and was surprised that the City would think about doing something that limits what they do. He stated that he and his wife like to go to open houses and the first thing they do is grab a brochure. He indicated that the signs are helpful and believed that they do not cause sign or sight pollution. Motion by Mayor Pro Tern Brombere to overrule the denial of the amendment by the Planning Commission; and introduce Ordinance No. 2002 -21 amending Chapter 20.67 related to temporary real estate signs and pass to second reading on September 24, 2002. Mayor Ridgeway opened the public hearing. Hearing no public testimony, Mayor Ridgeway closed the public hearing. In response to Council Member Adams' questions, Ms. Temple confirmed that the square inches of the box is counted toward the total limit of the sign, and that there is no limitation proposed regarding the text. She indicated that some of the deeper boxes do have text on the sides of the boxes. The motion carried by the following roll call vote: Ayes: O'Neil, Bromberg, Adams, Mayor Ridgeway Noes: Heffernan Abstain: None Absent: Glover, Proctor 19. GENERAL PLAN AMENDMENT NO. 2002 -002, LOCAL COASTAL Ord 2002 -22 PLAN AMENDMENT NO. 2002 -001, AND CODE AMENDMENT NO. Res 2002.57 2002 -002 (PA2001 -186) — 205 ORANGE STREET — REQUEST TO GPA 2002 -002/ CHANGE THE GENERAL PLAN LAND USE DESIGNATION FROM PA2001 -186/ RETAIL & COMMERCIAL TO TWO- FAMILY RESIDENTIAL, Local Coastal Volume 55 - Page 382 City of Newport Beach City Council Minutes September 10, 2002 INDEX CHANGE THE LOCAL COASTAL PLAN DESIGNATION FROM Amendment 2002 -0021 RETAIL & SERVICE COMMERCIAL TO TWO- FAMILY Code Amendment RESIDENTIAL, AND CHANGE THE ZONING DESIGNATION 2002 -002/ WITHIN THE NEWPORT SHORES SPECIFIC PLAN FROM 205 Orange Street COMMERCIAL TO RESIDENTIAL, IN ORDER TO REPLACE AN (45) EXISTING SINGLE - FAMILY DWELLING WITH A DUPLEX. Mayor Ridgeway opened the public hearing. Hearing no public testimony, Mayor Ridgeway closed the public hearing. Motion by Mayor Pro Tern Bromberg to adopt Resolution No. 2002 -57 approving General Plan Amendment 2002 -002 and Local Coastal Plan Amendment 2002 -001; and introduce Ordinance No. 2002 -22, which would grant approval to Code Amendment 2002 -002. Mayor Ridgeway believed that this is an appropriate action and that this would be upgrading the neighborhood to make it more residential. The motion carried by the following roll call vote: Ayes: Heffernan, O'Neil, Bromberg, Adams, Mayor Ridgeway Noes: None Abstain: None Absent: Glover, Proctor 20. CODE AMENDMENT NO. 2002 -001 (PA2002 -098) — 3513 FINLEY Ord 2002 -23 AVENUE — REQUEST TO CHANGE THE FRONT YARD SETBACK PA2002 -098 OF 3513 FINLEY AVENUE FACING THE RIVO ALTO CHANNEL Code Amendment ESTABLISHED ON DISTRICT MAP NO. 3 FROM 2002 -001/ 40 FEET TO 20 FEET. 3513 Finley Avenue (68) Mayor Ridgeway asked why creating a 20 foot setback is not done uniformly in the entire neighborhood, especially since it basically exists anyway. He believed that this is an appropriate action for the Planning Department to initiate for the Finley tract. Mayor Ridgeway opened the public hearing. Hearing no public testimony, Mayor Ridgeway closed the public hearing. Motion by Council Member O'Neil to introduce Ordinance No. 2002 -23 and pass to second reading on September 24, 2002. The motion carried by the following roll call vote: Ayes: Heffernan, O Neil, Bromberg, Adams, Mayor Ridgeway Noes: None Abstain: None Absent: Glover, Proctor O. CONTINUED BUSINESS 21. UNSCHEDULED VACANCY ON THE PARKS, BEACHES & Parks, Beaches & RECREATION COMMISSION AND THE PLANNING COMMISSION. Recreation Commission and Volume 55 - Page 383 City of Newport Beach City Council Minutes September 10, 2002 INDEX City Clerk Harkless read the ballot votes of the Council Members for the Planning Commiss. Parks, Beaches & Recreation Commission, as follows: Vacancies (24) William Garrett (Heffernan, O'Neil, Bromberg, Adams, Ridgeway) Christopher Sarris (none) City Clerk Harkless announced that William Garrett was appointed to the Parks, Beaches & Recreation Commission for a term ending June 30, 2007. City Clerk Harkless read the ballot votes of the Council Members for the Planning Commission, as follows: Jeff Cole (Ridgeway) Michael Toerge (Heffernan, O'Neil, Bromberg, Adams) City Clerk Harkless announced that Michael Toerge was appointed to the Planning Commission for a term ending June 30, 2005. P. CURRENT BUSINESS 22, JULY 4TH WEST NEWPORT BEACH SAFETY PLANNING Res 2002 -58 COMMITTEE. July 4th West Newport City Manager Bludau reported that there was a presentation at the last Safety Planning study session by the Police Chief regarding enforcement issues over the Committee last July 4th holiday. He stated that Council felt that something needed to (24) be done and the lust step would be to develop a committee. He noted that the resolution suggests that the composition of the committee include two Council Members, one being from District 2; the City Attorney's Office; three members of the West Newport Beach Association; two Police Department staff members appointed by the Police Chief; and no more than two other residents appointed by the Mayor who may possess expertise which could be beneficial to the committee. He reported that the committee would be charged with identifying legal parameters; identifying measures that minimize lawless behavior and provide the greatest degree of personal safety to local residents, their properties, and visitors; recommending appropriate measures to Council for immediate implementation and public dissemination well in advance of the next July 4th event; and planning for the coordination of resources to maximize their effectiveness. He added that the committee will be subject to the Brown Act, have its meetings noticed to the public, and be established as an ongoing committee until such time as the need for the committee no longer exists. Mayor Ridgeway reported that, when he was fast on the Planning Commission, he was on the West Newport Ad Hoc Committee with Council Member Debay. Marianne Zippi, 420 E. Bay Avenue, expressed concern about the committee coming to conclusions that will force a mob of people to move further down the Peninsula by forcing regulations that apply to only West Newport. She believed that, if regulations are created, they should apply to other areas in the Peninsula. She added that, if this is the case, other Volume 55 - Page 384 City of Newport Beach City Council Minutes September 10, 2002 INDEX members of the Peninsula, particularly Central Balboa and The Point, should be part of the committee. In response to Mayor Ridgeway's question, City Attorney Burnham confirmed that generally any ordinance must be applied equally across the City; however, there are ordinances that zone property in a specific manner and there are specific area plans that are adopted by ordinance. He stated that Council has the authority to adopt ordinances, policies, and resolutions that address the specific needs of various areas of the community. Al Silcock, President of the West Newport Beach Association, stated that a committee was formed about three years ago to work on this issue that consisted of their association, citizens in the area, and the Police Department. He believed that the committee has made several improvements to the process and put together a great working arrangement; however, Paul Watkins brought this to Council's attention, because they have gone as far as they can go. He stated that this is a NIMBY (Not In My Back Yard) issue for all of Newport Beach, not just West Newport. In response to Council questions, Mr. Silcock indicated that the committee is well represented as proposed. He suggested that Craig Baddely from Burr White Realty be appointed to the committee. He added that the Council Members involved directly in this part of the City be on the committee. Laura Dietz, 325 Cameo Shores Road, stated that, when flying back to Newport Beach from the Bay Area during the July 4th holiday, she was told by a young man from the Bay Area that he was going to Newport Beach to party. She believed that the committee should be larger and include representation from the Fire Department and the local merchants. She suggested that Council Member Adams talk to other cities at the League meeting on Thursday about the situation. Mayor Ridgeway stated that he chairs the Promote the Revitalization of Our Peninsula (PROP) Committee and believed that he would hear about it by his constituents if there was a fear of the event migrating down the Peninsula. He agreed that the two Council representatives from the Peninsula are the best choice to be on the committee. He added that it would be appropriate to have a person from the Fire Department on the committee, but at this point a motion is in order for what is proposed and noted that the committee makeup can be changed. Motion by Council Member Adams to approve the formation of the "July 41h West Newport Safety Planning Committee ", determine the appropriate makeup of the Committee through the adoption of Resolution No. 2002 -58, and appointed Mayor Ridgeway and Council Member Proctor as the City Council appointments. City Manager Bludau noted that the resolution does not state how the members of the West Newport Beach Association will be appointed, but it was his assumption that they would tell the City who their representatives will be. Volume 55 - Page 385 City of Newport Beach City Council Minutes September 10, 2002 The motion carried by vote: Ayes: Heffernan, O'Neil, Bromberg, Adams, Mayor Ridgeway Noes: None Abstain: None Absent: Glover, Proctor Q. MOTION FOR RECONSIDERATION - None. R. ADJOURNMENT - at 9:25 p.m. in memory of September 11. rs, wx��r ,r.tetf« *f *e*aeess «,tieett��ac The agenda for the Regular Meeting was posted on September 4, 2002, at 3:10 p.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. City Clerk Recording Secretary Mayor r Volume 55 - Page 386 INDEX