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HomeMy WebLinkAbout09/23/2003 - Study SessionCITY OF NEWPORT BEACH City Council Minutes Study Session September 23, 2003 - 4:00 p.m. ROLL CALL Present: Heffernan, Ridgeway, Adams (arrived at 4:14 p.m.), Webb, Nichols (arrived at 4:03 p.m.), Mayor Bromberg Absent: Proctor (excused) CURRENT BUSINESS 1. CLARIFICATION OF ITEMS ON THE CONSENT CALENDAR. Council Member Heffernan stated that he would be pulling Item 4 (Big Canyon Reservoir) tonight because he wants more detail about what is being done and how the City has placated neighbors on Spyglass, Harbor Ridge, etc. Further, he asked why the work is being done on the cover and water plant before the hardscape work. 2. MANAGEMENT OF INCOME PRODUCING AGREEMENTS. In response to Mayor Pro Tem Ridgeway's question, Administrative Services Director Danner reported that it has been over a year since Council Member Heffernan asked that this item come before Council. Utilizing a PowerPoint presentation, Mr. Danner reported that income agreement growth outpaces the City's development. He stated that the City has a large number of property leases and other income producing agreements which represents the City's third largest revenue source after property and sales tax. He noted that revenues range from $1 /year for the Girl Scout House to over $3 million /year for the Balboa Bay Club, and collectively the revenues generate over $10 million /year. Mr. Danner reported that, ten years ago, contract and management of these agreements were decentralized among 12 different departments. He noted that Administrative Services began consolidating the day -to -day billing and administrative processing of revenues in the early 1990s. He stated that today all City billings with the exception of the emergency medical services (EMS) are conducted by the revenue division. He reported that significant efficiencies have been realized by consolidating City receivables management; however, actual management level administration of the leases related to policy and negotiation of terms was not consolidated. He displayed the receivables that the revenue division currently bills. Mr. Danner stated that, within the past couple of years, his department began compiling a list of revenue generating leases, agreements, contracts, and franchises to keep track of revenues, noting that only about half was shown in the receivables slide. Volume 56 - Page 387 INDEX Management of Income Producing Agreements (73) City of Newport Beach Study Session Minutes September 23, 2003 INDEX In response to Council Member Heffernan's questions, Mr. Danner confirmed that billing has been consolidated and the City tries to include all the items into one monthly bill. He reiterated that, when he started in the early 1990s, billings were performed by different departments (i.e. Marine Department, General Services, Police Department) when it should have been centralized in Administrative Services. He stated that they are trying to consolidate as many as possible under a single statement. He added that they do not bill for everything since some things are paid to the City directly. Mr. Danner stated that most of the agreements were negotiated and managed by staff, the City Manager's office, and /or the Marine Department. However, staff reductions and reorganizations in the 1990s decentralized some of the negotiations to the department heads and left management responsibilities not well defined. He reported that, several years ago, the revenue division detected problems with some of the agreements in which it was asked to conduct revenue audits. He noted that the problems included agreements that have expired, some had appraisals or rate adjustments that have not occurred, there were lapses in insurance and performance bonds, and there were other performance requirement failings by the City and lessees. He stated that, even though revenue was recovered in most cases, such problems are an embarrassment to the City, a hardship to the lessees, and time consuming for staff to resolve. Mr. Danner stated that the solutions include 'outsourcing the property/ agreement management or using City staff. Mr. Danner reported that they met with the City Manager more than a year ago and presented a proposal to consolidate more of the responsibility for administration of these leases in Administrative Services and to hire an income property manager to handle the job, preferably with a paralegal or real estate background. He stated that they were directed to first thoroughly investigate the potential for accomplishing the function with an outside contract. He reported that they received proposals from the Bendetti Management Group and Jefferson Wells International, but both were comprehensive and expensive. He noted that neither vendor was interested in reducing the scope of their services in the proposal. He pointed out that Bendetti proposed performing the service for 5% of the gross revenue (about $500,000 /year), while Jefferson Wells' proposal was for about $325,000. He displayed a slide that showed what was included in their proposals. Mr. Danner reported that most of the leases and agreements are complex documents with inconsistent formats, contents, and requirements for the City and the lessee, including periodic adjustments, reviews, and expirations. He added that these were negotiated many years ago by different individuals. He listed the aspects of a typical agreement. He reported that Jefferson Wells and Bendetti included creating an abstract of each agreement as a separate and required component of the proposal. He stated that this needs to be done by someone. He indicated that the City Attorney's office, through a contract attorney, began assisting the City with abstracting the largest revenue - producing agreements earlier this year and has completed the abstracts on three agreements at a cost of $751hour. He reported that the total cost for completing the abstracts in this manner is a one time expense of about $30,000. Mr. Danner reported that many cities and counties have real property management positions and some have significantly fewer properties and less related revenues than the City. He stated that the average base salary for these Volume 56 - Page 388 City of Newport Beach Study Session Minutes September 23, 2003 INDEX positions range from $74,000 to $96,000 a year, and the responsibilities are administrative and enforcement oriented. He displayed a list of agencies that have positions similar to what is being proposed. He reported that most management aspects are supported by software systems that could cost about $10,000. Mr. Danner stated that they believe that the daily administration of these agreements and leases should be conducted by Administrative Services staff. However, noting that using staff would be more cost- effective than outsourcing, he reported that they cannot absorb the extra work with the current personnel because of existing workloads and the recent annexations. He stated that they are proposing to place this function in the revenue division, noting that their staff has not been augmented since the downsizing in the early 1990s. He added that they believe that establishing a point of contact for other income - generating opportunities would also improve consistency and continuity. Mr. Danner pointed out that this function has become too important and needs more attention than it has received in the past. He believed that in -house administration is most efficient and the least costly way to administer this process. He emphasized that the City needs to tighten how it is doing business, especially since there is a revenue source that is within its control, rather than being subjugated to the political whims of the State. Mr. Danner reported that the City Attorney has been consulted on this issue and concurs with the proposal, the concept has been discussed with the Finance Committee on at least one occasion and they agree with the recommendation, and this concept was mentioned during budget deliberations earlier this year. He stated that it was their intent to incorporate this new position in the 2003- 2004 budget, but the staff work was not completed in time. He added that he did not want to place this item on the regular agenda without the opportunity to discuss it with Council at a study session, receive direction, and answer any questions. He announced that Deputy Administrative Services Director Kurth and Revenue Manager Everroad are also present to answer any questions. Mayor Pro Tem Ridgeway stated that he has information for Mr. Danner regarding the software he is using. He indicated that he read the proposals, but didn't like them because of the cost. He stated that he is happy with the recommendation. Mr. Danner confirmed that the proposed employee would be in the Administrative Services Department. Mr. Everroad confirmed that 70% of the 130 properties are real property. Mr. Danner reported that abstracts have been completed for the Balboa Bay Club, the American Legion, and the Corona del Mar concession. He explained that the concession was done because the agreement has expired and is up for renewal. He stated that they hoped to be further along in the process, but the City Attorney's office is keeping the attorney busy. He confirmed that this could be outsourced, but they feel that the attorney can do a good job and be less expensive than some of the other proposals they received. He stated that, as long as she has the time, they recommend using her. Mayor Pro Tem Ridgeway suggested that, as Mr. Danner's office collects the agreements, they keep an extra copy so the property manager has a drawer to go to and everything is centralized. Mayor Bromberg noted that Council Member Heffernan is the chair of the Finance Committee. Council Member Heffernan indicated that they have not addressed this specific issue because they have not seen the proposal to add staff Volume 56 - Page 389 City of Newport Beach Study Session Minutes September 23, 2003 in- house. He stated that when he was first on Council he asked how a specific lease was administered. He indicated that it was alarming to hear that different departments handled it. He stated that it was appropriate to have this under the finance department and there be a uniform abstract form or grid to summarize all the documents and to have the documents looked at on a monthly basis. Council Member Heffernan believed that the work is not complete because the abstracts have not been performed, so the City does not have all the data in one spot. Plus, the City does not have the program to indicate whether a payment has been received, list the contact person, show insurance information, etc. He reported that, once they know the data, it is in one spot, and can be monitored, then it can be reflected in a uniform bill. He emphasized that this accounts for about $10 million a year and is a reoccurring problem of management. He added that collection will also be better once it is on one monthly bill. He stated that the question for Council is whether this is best handled in -house or with an outside source. He indicated that he is not ready to answer this today. He believed that getting this within one department is a good start. Mr. Danner noted that the two proposals were costly and they proposed doing things that the City does not want them to do (i.e. billing and collecting revenue). He stated that, after weighing the cost and services Bendetti and Jefferson Wells would provide, they believe they could do this function in -house as good as Bendetti and Jefferson Wells for less money. Mayor Pro Tern Ridgeway stated that he has property managers and he is not paying anywhere near 3.55% to 5 %. Mayor Pro Tem Ridgeway noted that every lessee has to provide a yearly insurance certificate that names the City as the additional insured. He believed that the City does not receive 1/3 of those and this is why the City needs an in- house manager. He stated that making sure the City has the certificate is equally as important as the collection because of unlimited liability to the City. In response to Council Member Heffernan's questions, Mr. Danner stated that a lot of cities have property managers or property agents. He indicated that they have enough information to move forward. City Manager Bludau stated that they are hoping to receive authorization to put this on a future agenda and develop a job description. Mayor Bromberg suggested that staff develop what it needs and bring it before the Finance Committee, have them fine tune it, and then bring it before Council. 3. BACK BAY SCIENCE CENTER. Utilizing a PowerPoint presentation, City Attorney Burnham noted that the Back Bay Science Center project, formally known as the Marine Study Center, has been around for 3'/2 to 4 years and came about during discussions relative to projects that could be funded with American Trader Oil Spill proceeds. He stated that, to date, this is the funding source for the City's contribution. He reported that the Center has always included the concept of a water quality testing lab and water quality research and education facility. He indicated that they have more recently looked into the possibility of restoring the wetlands at the south side of Shellmaker Island and creating an area that would serve as a wetland restoration and research arena. Further, there will be a set of interpretive trails, storage and office space, and a meeting area. He reported Volume 56 - Page 390 1101IM1i Back Bay Science Center (51) City of Newport Beach Study Session Minutes September 23, 2003 INDEX that tton Yee has been the architect and principal designer for the project since its inception and devoted a lot of time, some of which was voluntary, to bringing the project to where it is right now. He pointed out that the model that Mr. Yee prepared displays the 13,000 sq. foot building, restored wetlands, interpretive trail, and the other onsite amenities. Mr. Burnham reported that the functions of the facility are still being discussed by the principal parties (Department of Fish and Game, the County, and the City). He noted that the process also involves UCI because their crew facility is scheduled to be replaced with a larger building behind the Center. He stated that the Coastal Commission has been involved in developing the curricula and interpretive plan, as well as maintaining the greenhouse that propagates native vegetation. He noted that there is a voluntary program that plants the vegetation in the Upper Bay and removes the exotic plants. Mr. Burnham reported that the City has prepared a negative declaration for the Department of Fish and Game. He indicated that, this morning, the Department of Fish and Wildlife told them they needed a finding of no significant impacts. He stated that they have hastily prepared an environmental assessment. He added that Jon Douglas is making good progress on a coastal development permit application which will hopefully be filed in time to get this on the January agenda. He reported that they hope to go out to bid some time in February. He stated that the two primary funding sources are $1 million from a Department of Fish and Game grant and $1.23 million from the County for the water quality lab. He indicated that the estimated cost for the project is about $3.7 million to $4 million. He noted that the City has contributed about $550,000 and there is not much money left in this account. He indicated that the City also maintains an account that is derived from Beacon Bay lease revenue ($300,000) that must be used for Upper Bay projects. He stated that the State Lands Commission has indicated that the City could use those funds for this project since it complies with the restrictions for the use of the funds. Ron Yeo displayed the site plan and stated that the intent is to get rid of all the temporary facilities and build one complex. He reported that, if they do not have all the funds to pay for everything, they will build the water quality and teaching labs and as much of the complex as possible, and utilize the existing temporary facilities for office space. He emphasized that it is their goal to work hard and raise money to do as much as they can. He indicated that it is a long range project to get all of the teaching tools needed. He noted that everyone is in favor of this project. Assistant City Manager Kiff stated that the concept behind the center is to have an active, hands -on place to learn about water quality and environmental protection. He indicated that there would be touch tanks, the County's lab, a tidepool demonstration area, an education curriculum approved by the Coastal Commission, and green buildings that reflect environmental protection. He showed an aerial of Shellmaker a couple of years ago and what it will look like after the center is built. Council Member Heffernan noted that Shellmaker is at the corner of the Dunes marina. Assistant City Manager Kiff also displayed the proposed improvements and the floor plan. He stated that all of the testing for ocean and bay water across the County would be done at this lab. He noted that everyone could see the testing occur. Mayor Pro Tem Ridgeway clarified that Volume 56 - Page 391 City of Newport Beach Study Session Minutes September 23, 2003 INDEX most of the ocean testing will actually ne clone ny the urange Vounty banitation District. Assistant City Manager Kiff indicated that the County will be doing this from Corona del Mar to the south. Assistant City Manager Kiff reported that they need to look for additional funding to finish the job. He indicated that there are some State bond revenues available for water quality education - oriented facilities, but he will need to investigate whether they are still available. He stated that there is also some moneys that the City is required to dedicate towards Upper Newport Bay programs through SB573. He indicated that another option would be to phase or downscale the project. Assistant City Manager Kiff reported that more information can be found on the City's website (www.citv.newport- beach.ca.us) and there is also an opinion email address that people can send their comments to ( opinimis(Lbcity .newport- beach.ca.us). Mr. Burnham stated that there has been a lengthy process for developing an interpretive plan that describes the functions of the center. He indicated that they are not sure they did a great job in revealing the draft plan to the local environmental community. He reported that they recently met with environmental organizations and he will be meeting with Jean Watt in the near future. He emphasized that the idea is not to duplicate what is done at the Muth Center or interfere with any other water quality education program. He stated that there is enough need for as much water quality education as possible and he believed that this will be the kind of center that gives the City the presence in the Upper Bay that Council indicated it wants. Mayor Bromberg added that this is fitting for Newport Beach since it is a coastal city. In response to Council Member Heffernan's questions, Mr. Burnham reported that the nest action that needs to be taken is the cooperative agreement that talks about the phasing of construction, financing /construction management if the funds are short, and takes the first step toward an operating agreement once the facility is running. He indicated that this should come to Council within 30 days. He stated that, following this, Council will be presented with a use and occupancy agreement and a full operating agreement that describes what the County, City, and Department of Fish and Game will be doing after the facility is constructed to maintain the site, ensure that programs are being offered on a regular basis, and ensure that the curricula is appropriate. Mr. Burnham reported that the City is not obligated to make up the $2 million shortfall. He explained that, when the cooperative agreement is brought before Council, he believed they will list potential funding options. He clarified that they will phase construction if they do not have the money when they go out to bid. In response to Council Member Webb's questions, Mr. Burnham confirmed that they will be looking for benefactors in the community to help fund the shortfall. He reported that they met this morning with an individual who has raised money in this community before and provided them with good ideas they will probably be implementing or pursuing in the nest couple of weeks. He stated that this will also come back to Council. Council Member Nichols asked if they have looked at alternate projects or uses for Shellmaker Island. Mr. Burnham reported that Shellmaker Island is owned in -fee by the Department of Fish and Game. He stated that the County, City, and Department of Fish and Game are advocating this project because it serves Volume 56 - Page 392 City of Newport Beach Study Session Minutes September 23, 2003 the interest of each of the entities. He confirmed that the Center would be supplying a need that is not being supplied or not adequately being supplied. Council Member Nichols noted that the City has a lot of other things that also need funding. Mr. Burnham stated that they have been careful so far to make sure that the funding for this project has only come from funds that are earmarked for this purpose, rather than from General Fund money. Council Member Nichols noted that the Corona del Mar beach sand is unfunded. He asked if the Muth Center is an appropriate place for the center and if the Back Bay can be used for some eelgrass mitigation. Mr. Burnham reported that this area is not appropriate for eelgrass restoration, although the program at Upper Bay has identified sites that are fairly close to the Dunes as possible restoration sites. He explained that the Muth Center is not the type of facility that would serve the functions previously discussed, is far from parking, is not immediately adjacent to the water, and is not owned by the Department of Fish and Game. 4. BIG CANYON RESERVOIR COVERING AND DISINFECTION FACILITIES; STATUS REPORT PRIOR TO BIDDING PROJECT. City Manager Bludau noted that moving forward with the cover was one of staffs top 12 priorities for the last fiscal year. Principal Civil Engineer Sinacori announced that Utilities Director Davidson and Utilities Operations Manager Antista are in the audience and stated that they, along with their staff, have spent a lot of time on this project over the last few years. He also noted that Harry Kobzeff, the landscape architect, and Steve Tedesco, TetraTech, Inc. Vice President, are also in the audience. Utilizing a PowerPoint presentation, Mr. Sinacori reported that the floating cover would be for the 23 acre surface water reservoir and includes a structural curb around the entire reservoir, a stainless steel anchoring system, new security fencing along the top, and four circulation mixing pumps along the bottom of the reservoir. He stated that another benefit to the project is the new liquid chloramination disinfection facility to replace the gas system with a safer liquid system. He noted that this will be placed before the dam. He added that there will also be some landscape and site improvements. Mr. Sinacori reported that the State Department inspects and permits the City's water system; in 1989, they mandated the elimination of the open body reservoir; in 2005, the Trihalomethanes Limit (THMs) will change; and it will be difficult to meet the new limits with the open body reservoir. He emphasized that today and in the past, the City has always met all current Federal and State health standards for water quality. He reported that the cover will eliminate the gas chlorination facility, there will be a new state of the art chloramination facility, there will be a safer liquid system that is endorsed by the Newport Beach Fire Department, it reduces chemical treatment expenses by about $40,000 /year, it eliminates midge fly and algae, and they will be able to maintain some emergency storage for the City. Regarding the California Environmental Quality Act (CEQA) process, Mr. Sinacori stated that the City contracted with Helix Environmental in December 1993, the first public scoping meeting was held in January 1994, the second meeting was held in February 1994 at the Minkoff residence on Yacht Enchantress since not many people attended the first meeting, and the County Volume 56 - Page 393 INDEX Big Canyon Reservoir Covering & Disinfection Facilities (89) City of Newport Beach Study Session Minutes September 23, 2003 INDEX approved the mitigated negative declaration in June 1994. He noted that the negative declaration had seven mitigation measures: 1) compliance with the excavation and grading codes; 2) dust suppression; 3) construction emission reductions; 4) Regional Water Quality Control Board approval; 5) construction notification; 6) traffic control; and 7) a landscape plan. He noted that the landscape plan is to be prepared by a licensed landscape architect in consultation with the affected neighborhoods. He reported that they went back to the Minkoff residence (SeaView Community Association) in October 2002 and the association sent an approval letter in July; and they met with the Pacific View Cemetery in fall 2002 to try to develop a plan that utilizes the cemetery slope to better screen the cover. He indicated that the residents and the Pacific View Cemetery management liked the idea; however, their corporate office rejected it. He stated that they have not had any formal meetings with residents from the Spy Class community. He indicated that several residents have contacted them over the years since the CEQA report was published and reported that these residents can adjust the landscaping to reach their desired view. Mr. Sinacori explained that this has taken so long because the groundwater development project came online in October 1997 and was the highest priority. He stated that it was directed by Council to have this program be a pay- as -you- go program, but they still had a $16 million bond for the groundwater project that ended up being $25 million in 1995. He reported that they began seeking Federal funding in 1998, which was approved in fiscal year 2002 -2003 for $867,000. He noted that the earliest opportunity to have the funds to cover the reservoir was in 2000. Mr. Sinacori reported that staff is in the process of draining and cleaning the reservoir and assessing the needed repairs to the bottom, landscape and site improvements have been bid, the cover and disinfection improvements are being finalized, the federal funding process is ongoing, and there will be coordination with the Metropolitan Water District (MWD). He displayed photos of the reservoir, the bottom of the reservoir, and the sign that warns of a chlorine leak. He noted that they will no longer have this risk starting next week because the facility will be out of chlorine gas. Mr. Sinacori reported that, during the next 15 months, MWD will be the source of water. He noted that there has been quite a bit of coordination with MWD on this, stating that they have also reviewed any planned shutdowns with them. He stated that the groundwater development project will be the backup supply to MWD and there will also be emergency interconnects with other agencies. He displayed the water facilities in Orange County. Mr. Sinacori stated that the landscape and site improvements include tree replacement, tree additions, and decorative block wall and landscape improvements. He reported that bids were received in August 2003, Council will consider awarding the contract tonight, and the completion is scheduled for January 2004. He noted that this will be inspected in- house. He stated that the trees that will be added are mostly eucalyptus trees. Mayor Pro Tern Ridgeway expressed concern that the trees will grow very tall and residents will later say the City is blocking their view. Further, the trees drop leaves and are messy. Mr. Sinacori reported that the SeaView community talked about all the different specimens and what could be done with views. He noted that the SeaView Landscape Committee and board reviewed the project. He stated that Pacific View manages their slope and there are shorter specimen of eucalyptus trees on Volume 56 - Page 394 City of Newport Beach Study Session Minutes September 23, 2003 INDEX the hills. He confirmed for Mayor Pro '1'em Ridgeway that the Urty's arborist and General Services Director have also been involved in this project. He indicated that the best thing the City can do is to get as tall a eucalyptus tree as possible since they cannot get trees higher than 60 feet to benefit everyone's views all the way up the hill. Mayor Pro Tem Ridgeway stated that the houses in the lower levels do not need 60 foot trees, but the higher people will. lie asked if using 60 foot trees will be creating a future problem for the City. Public Works Director Badum reported that Mr. Sinacori has simulations that will show what they are proposing. He assured everyone that the issue of views has been carefully considered by the landscape architect. Mr. Sinacori displayed the landscape simulations that have been presented to the community. He reported that that the residents have lost vegetation due to El Nino and putting back the vegetation has been an issue with their landscape committee because doing this would block somebody else's view. He stated that the predominant views are well past the ocean, noting that the trees just help screen the reservoir and does not impact views. He displayed the views from the Minkoff property that looks at the reservoir horizontally. He stated that the plant material is in their yard, but they can adjust it to any level they want to mitigate their view. He noted that the eucalyptus tree in their view is City property. He added that the Minkof£s love the tree, would like it back, and have asked for more trees. He noted that, as you look at the views from the properties as you move up the hill, they still have their ocean view but the reservoir is screened. He indicated that the trees will be in a 24 -inch box, but the seedlings will shoot past this box in a couple of years. It was stated from the audience by staff that the trees will reach 60 feet in about five years. Mr. Sinacori reported that every resident has some sort of landscape hedge in their backyard and it depends on how high they want the hedge and how they want to mitigate the view of the reservoir and the cemetery site. He emphasized that they cannot put trees high enough to help Spy Glass because it would hurt the people lower on the hill. He showed a 60 foot tree along the buffer that does not impede views. Mayor Pro Tem Ridgeway clarified that he just wanted to make sure the issue is being reviewed. Council Member Heffernan indicated that he may have a conflict because he lives about 200 feet away. He noted that he lives downstream of the reservoir and asked if seismic issues have been looked at. Utilities Director Davidson reported that they went out for proposals a year ago for seismic consultants and conducted a complete seismic analysis of the dam. He stated that it passed with no problems and meets today's seismic standards. He reported that they had to do the seismic study prior to the cover project because, after the Northridge earthquakes, all the dam seismic standards changed. In response to Council Member Webb's question, Mr. Davidson reported that the City has to submit information to the Bureau of Dam Safety yearly. Council Member Heffernan stated that now is the time to deal with any conceptual problems because once the reservoir is full, they will not be able to do this. He noted that the City is not changing the reservoir and will be using the existing topographical configuration of the dam. Mr. Davidson reported that the City will be repairing cracks, has already done work on the slopes, and will be patching or putting an asphalt overlay over the entire bottom, as well as making needed repairs. Regarding the reservoir bottom, Council Member Webb stated that it is very soft because there is a clay lining underneath. He noted that it is an extremely Volume 56 - Page 395 City of Newport Beach Study Session Minutes September 23, 2003 INDEX complicated and complex process to do paving operations. He indicated that they tried this about 10 or 15 years ago, but the truck gradually sank to the bottom. He noted that the asphalt is not really a part of the structural membrane that protects and keeps the water in the reservoir, but the clay layer underneath does this. Council Member Heffernan stated that one of the issues that he has repeatedly heard from engineering firms that have done this, is that the key objection is that people will be looking down onto a black -gray cover when they once had a blue water view. Mr. Sinacori indicated that, depending on where they are at, they will still look at asphalt sides, a rusted fence, and an asphalt road. He stated that the cover may end up looking more attractive to them. Mr. Sinacori reported that the cover material is approved by the State Health Department and can be either tan, white, or black. He noted that they first thought the tan color would be acceptable to the community; however, it may end up looking very dirty, will need cleaning more often, and stand out more as a non - natural feature rather than a black cover that may blend away like an asphalt street. He reported that the black cover is actually more durable than the tan cover. Mr. Sinacori reported that TetraTech, Inc. started this project as ASL Consultants in 1995, but it was put on hold in 1997 because of funding issues. He stated that an amendment was approved in July 2002 to add the disinfection system to their contract. He indicated that they are expecting plans shortly. He stated that the contract can probably be awarded in December if they can figure out what to do with the bottom quickly and make any necessary repairs or add the repairs to the project. Mr. Sinacori reported that the funds were requested in the 2002 -2003 federal fiscal year which normally starts in October. He stated that the appropriations were delayed until January 2003 and it took until May 2003 before the federal government in «'ashington got the paperwork from San Francisco's federal offices. He noted that part of the process involves following the guidelines of the National Environmental Protection Act (NEPA) which includes preparing an environmental assessment (EA) utilizing City CEQA documents. He stated that Bucknam & Associates has been hired to prepare a draft document for the EPA and hopefully they will release it for review in late October. He believed that the whole process should be done by December 2003 or January 2004. He emphasized that, if they start spending any money now, they will not be eligible for any reimbursement. Mr. Sinacori stated that the plan is to award the contract on December 9, 2003. He noted that the El Toro Water District (ETWD) installed a new cover last year, but they have operated with a cover for 20 years. He stated that they have tapped into their experience and will be recommending to Council that the City use the same inspector they used. Mr. Sinacori reported that it takes three months to make the material, the concrete curb and site work will take about three months, and they hope to install the cover in April 2004. He indicated that the disinfectant facility will be in construction the entire nine months. He noted that the working hours are Monday through Friday from 7:00 a.m. to 5:00 p.m. City Manager Bludau asked how noisy construction will be. Mr. Sinacori reported that there will probably be a few backup bells and residents may be able to see the work being done. He added that they are also considering including a bonus /penalty clause in the contract to help speed things along. Volume 56 - Page 396 City of Newport Beach Study Session Minutes September 23, 2003 INDEX Utilities Operations Manager Antista stated that there will be certain maintenance and operation requirements when the project is complete. He reported that the State Health Department has adopted American Water Works Association (AWWA) rules and regulations for maintenance and inspection of floating covers and the disinfectant facility. He stated that the inspection of the cover and overall facility will be done daily; maintenance and repairs to the cover will be done weekly; hatch and vent inspections will be done weekly; they are required to inspect and maintain the rain water removal system; they are required to wash down the cover a minimum of four times a year; and required to keep records and submit reports to the Department of Health Services. He indicated that the water from washing down the cover will be pumped into the settling basin. He reported that they conducted a study and will he installing mixing pumps and circulation pumps in the reservoir to improve turnover and eliminate potential nitrification problems that are associated with covered reservoirs. Mr. Antista reported that the new disinfection system will eliminate the gas chlorine system with a more complex sodium hypochlorite and aqueous ammonia disinfection system. He added that the disinfection system will be expanded at 161h Street to mirror the operation at Big Canyon. He stated that, in fiscal 2004 -2005, they will be requesting two additional water plant operators to offset the additional maintenance requirements for the new facilities. He displayed slides of the aqueous ammonia chemical feed pumps that are not currently in use at 161h Street and also showed ETWD's treatment plant which is similar to what Big Canyon will have. He added that the disinfectant facility is highly technical and will require expert manpower to operate. He reported that the outside of the cover is not treated, but it will be disinfected once it is built and being installed. He stated that they expect to be cleaning bird droppings and eucalyptus leaves off of the cover. He confirmed that ETWD has the same type of cover on their reservoir and it is also black, but their previous cover was brown. He stated that the intermediate fabric material is nylon. Mayor Bromberg expressed concern that the City will be telling people they cannot hose their sidewalks but the City will be able to put the water from the washing down of the cover into the bay. He believed that the City would be violating the law if it does this. Mr. Sinacori reported that the Regional Water Quality Control Board permits and has discharges related to this operation. He reported that the person who designed the original reservoir built a treatment system with settling basins. He indicated that the City has to monitor the discharge, measure for all the different constituents, and dechlorinate. He noted that it goes into an earthen channel first. He reported that he also will be talking with Assistant City Manager Kiff about possibly using the water for another use. He indicated that this water will not hurt the bay. Mr. Sinacori stated that they have spent a lot of time with ETWD and displayed photos of their covered reservoir. He indicated that it takes a dozen people to move the material in and get in place, and it uses a thermo -weld. He stated that their cover lasted 20 years. He also displayed the rainwater troughs, the floats that keep them in place, someone walking on the cover, and how they clean and wash down the reservoir. He noted that ETWD's wash downs go straight to the drainage system. ?Mayor Pro Tern Ridgeway believed that the City could do a diversion to the OCSD. Mr. Sinacori indicated that they looked into this; however, it is a lot of water and would inundate the sewer system. Volume 56 - Page 397 City of Newport Beach Study Session Minutes September 23, 2003 Mr. Sinacori reported that they invited a lot of people to the meeting from the SeaView community, unfortunately, people were on vacation and unable to attend. Further, the property manager of SeaView has just resigned. City Manager Bludau indicated that, since the contract award is on tonight's agenda, he thought it would be a good idea to walk through the whole process. Mayor Bromberg commended staff on the presentation. Council Member Heffernan reported that the City Attorney has informed him that he would have a conflict with tonight's item. City Attorney Burnham clarified that he is evaluating whether Council Member Heffernan has a conflict or not. PUBLIC COMMENTS - None. ADJOURNMENT - 5:43 p.m The agenda for the Study Session was posted on September 17, 2003, at 2:40 p.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. City Clerk Recording Secretary Volume 56 - Page 398 INDEX