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HomeMy WebLinkAbout03/13/2012 - Study Sessionk V 4,� C , ` .1D `,� u•. � W'I i. .101 C City Council Minutes City Council Study Session March 13, 2012 — 4:00 p.m. I. ROLL CALL - 2:00 p.m. Present: Council Member Hill, Council Member Rosansky, Council Member Henn, Mayor Pro Tern Curry, Mayor Gardner, Council Member Selich Excused: Council Member Daigle II. PUBLIC COMMENTS -None City Council adjourned to Closed Session at 2:00 p.m- III. CLOSED SESSION - 2:00 a.m. A. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Government Code § 54956.9(a)): Three matters: 1. Morningside Recovery, LLC, et al v City of Newport Beach Orange County Superior Court No. 30- 2011 - 00505900 -CU -WM -CJC 2. City of Newport Beach v Dennis Lee Holland Orange County Superior Court Case No. 30- 2011- 00486864 -CU -MC -CJC 3. Friends for Good Planning v City of Newport Beach (Real Parties in Interest: Newport Beach Country Club, Inc. and International Bay Company) Orange County Superior Court Case No. 30- 2012 - 00550274 B. CONFERENCE WITH LEGAL COUNSEL ANTICIPATED LITIGATION - SIGNIFICANT EXPOSURE TO LITIGATION (Government Code § 54956.9(b)):I potential case C. CONFERENCE WITH LEGAL COUNSEL ANTICIPATED LITIGATION - INITIATION OF LITIGATION (Government Code § 54956.9(c)): 2 potential cases D. CONFERENCE WITH LABOR NEGOTIATORS (Government Code § 54957.6) Agency Designated Representatives: Dave Mff, City Manager; Dana Smith, Assistant City Manager; Terri Cassidy, Human Resources Director; and Richard Kreisler, Special Counsel and Negotiator Employee Organizations: All Labor Associations: Association of Newport Beach Ocean Lifeguards (ANBOL); Lifeguard Management Association (LMA); Newport Beach Fire Management Volume 60 - Page 393 City of Newport Beach City Council Study Session March 13, 2012 Association (NBFMA); Newport Beach Firefighters' Association (NBFA); Police Management Association (PMA); Police Employees' Association (PEA); City Employees Association (NBCEA); Newport Beach Professional & Technical Employees Association (NBPTEA); Newport Beach Employees League (LABEL); and Newport Beach Part -Time Unit (UPEC, Local 777) I. ROLL CALL - 4:00 P.M. Present: Council Member Hill, Council Member Rosansky, Mayor Pro Tern Curry, Mayor Gardner, Council Member Selich, Council Member Henn, Council Member Daigle V. CLOSED SESSION REPORT - None VI. CURRENT BUSINESS COUNCIL TO SHOW APPRECIATION TO FERN PIRKLE AND OTHERS FOR THEIR WORK AS "FRIENDS OF THE IRVINE COAST." Mayor Gardner listed the accomplishments and achievements of Fern Pickle and others. She addressed the goals of the organization, discussed the completion of their mission, and presented Ms. Pirkle with a proclamation in appreciation for her work. Fern Pirkle expressed her gratitude for the opportunity to serve the City. 2. CLARIFICATION OF ITEMS ON THE CONSENT CALENDAR. Regarding Item #4 (Peninsula Point Alley Replacement), Mayor Gardner stated that there was a recent presentation on "green streets" and noted that recommendations have been made by the Green Building Task Force to make streets greener with the use of permeable pavement. In response to her question, Deputy Public Works Director Webb reported that sand infiltration will be used on one of the alleys, noted that the entire alley has not been looked at yet, reported that the alleys are being poured in one uniform pour, and stated that permeable pavement is not being used for this project. HARBOR CHARGES. [100 -20121 City Manager Kiff provided a PowerPoint presentation addressing the purpose, responsibilities, and goals of the Tidelands Management Committee and the Ad Hoc Committee on Harbor Charges. He discussed the Tidelands, presented an outline of the work plan for the Committee on Harbor Charges, addressed adjustments made, highlighted examples of commercial marinas, listed the largest 15 commercial pier permittees, added that permit holders currently rent a section of tidelands via a one -year permit, discussed the rate per square foot, indicated that the proposed new rent structure is based on 20% of gross income or on a base minimum rent of $1.20 per square foot whichever is greater, addressed moving from one -year permits to longer - term leases, reported that the proposal includes phasing the increases over three years, and discussed the lease negotiation process. In response to Council Member Daigle's question, City Manager Kiff addressed the pros and cons of changing from one -year permits to longer -term leases. Gary Pickett, CFO for Ardell Marina, commented on the uniqueness of Newport Harbor and the actions of commercial marina operators in their efforts to run the marina. He believed that the City's proposal does not consider the investments made by commercial marina operators, listed Volume 60 - Page 394 City of Newport Beach City Council Study Session March 13, 2012 perceived flaws in the proposed lease agreements, reported that they are willing to work with the City on an agreement that is fair to each party, stated that the City's proposal should be based on fair - market value, addressed the increase in fees with the proposed terms, stated that the City has not followed a proper process to establish the value of the tideland's use, noted that the operators are requesting information that supports the proposed increases, and listed the negative effects on the marina if the proposed plan is approved. Dan Purcell thanked Council for addressing this issue. John Vallely provided a brief history of his family's experience as waterfront property owners, listed actions taken in developing the property, believed that it is the federal government's responsibility to dredge the harbor, and expressed concern that this is an effort by the government to take away property rights. John Curci, Managing Owner of Lido Yacht Anchorage, referenced a letter dated March 7, 2012 to Council listing his concerns, noted his continued efforts in maintaining and improving his property, believed that private ownership of the uplands needs to be recognized as a unique private /public relationship with the City, acknowledged the need to increase the tidelands fees but disagreed with the process used to determine the fees, addressed the proposed lease agreement, provided the negative impacts to marina operators /owners of the proposed plan, and asked for additional time to develop favorable resolutions for all of the parties. Mike Thompson, representing two sports fishing and whale- watching businesses in the harbor, indicated that it will be difficult for marina operators /owners to pay the proposed increases, and stated that he believed that the City will be "double dipping ". Norman Rest, Lido Sailing Club, reported that he built a seawall, provided other improvements at his own expense, and expressed opposition to the proposed plan. Bob McAffrey spoke in opposition to the proposed plan. Bud Reveley inquired as to the ownership of the property the City is proposing to lease. City Manager Kiff stated that the State has assigned the land to the City and clarified that the State will not collect any fees. In response to Mayor Gardner's questions, Council Member Selich stated that the seawall improvements made were for the benefit of the uplands. City Manager Kiff stated Newport Harbor is unique and noted that if the properties were to be appraised, they would be assigned at a higher rate of 25% or more if the same entity owned the uplands and the tidelands. Council Member Selich added that the rental percentage of the Balboa Bay Club is 30% because the City controls the uplands and tideland. Mayor Pro Tem Curry thanked his Council colleagues who served on the Tidelands Committee, noted that everyone acknowledges the need to raise fees, stated that he is sensitive to the issues raised, suggested taking time to have additional public hearing sessions to allow the harbor community to participate, expressed concerns about the economics and the possibility of the government being involved in people's business, and expressed interest in sending the item back to the Tidelands Committee for additional discussions with user groups. In response to Council Member Hill's concerns, City Manager Kiff affirmed that the activity of the tidelands fund is reported annually and reported that the tidelands include the harbor and ocean beaches. Regarding the federal government's responsibilities, he noted that the City has a federal lobbyist that is trying to get monies for the Lower Bay project and added that it was this Council that first put money in the budget for the Lower Bay project. Volume 60 - Page 395 City of Newport Beach City Council Study Session March 13, 2012 Council Member Hill believed that the proposed 20% of gross income fee could be a burden for businesses, stated that he would like to see the difference between what is currently being paid and the 20% of gross income, and noted that he would like to review the appraisal process that is being used. Council Member Daigle acknowledged frustration regarding the government and believed that the approach needs to be explored. She agreed with needing more time to work with user groups, believed that the value of the uplands needs to be considered in the calculations, stated that for the last 70 years the harbor has not been maintained by the federal government but by the self- starters in the community, and suggested that the City work with the community and user groups. Mayor Gardner acknowledged the need for additional community input and consideration. Council Member Selich commented on the appraisal process, stated that 20% was not a random choice, and noted that the City's goal is not to raise revenues, but rather to meet its obligations under the State Tidelands Act. Mayor Gardner reported that there will be more time in the future for public input. City Manager Kiff thanked members of the public for their comments and email submissions. Council Member Henn suggested that staff schedule a community meeting as soon as possible 4. REVISION OF STATE'S VERY HIGH FIRE HAZARD SEVERITY ZONE (VHFHSZ) MAP FOR THE CITY OF NEWPORT BEACH. [100 -2012] Mayor Pro Tem Curry recused himself since he lives in one of the City's Very High Fire Hazard Severity Zones. Fire Chief Poster utlized a PowerPoint presentation to explain possible fire- related hazards in Newport Beach, discuss current methods of fire mitigation, present examples of local fires, note that vegetation and steep slopes carry a fire quickly toward homes, report on the current situation and determination of high- hazard areas, provide solutions including defensible space, present examples of the fuel modification zones, identify the high- hazard zones in Newport Coast, explain that the homes in the high - hazard zones were built according to Orange County Fire Authority (OCFA) standards, present a Cal Fire Very High Fire Hazard Severity Zone Map generated by the State, report that some of the areas identified by the State did not measure correctly relative to wind velocity, present staffs recommendation to adjust the State map, identify fire corridor areas as well as topography issues, address concerns voiced by homeowners, note that fuel modification zones already exist, explain that changes in the High - Hazard zone will require changes in building construction, report that homes inside the fuel modification zone perimeter do not have increased building standards, and add that homes in the High - Hazard zone that are newly modified by over 50% will need to abide by OCFA standards. He noted that once the City's Fire Department develops findings an official report and map will be presented to Council for consideration and approval and stated that the report will be presented to the State after receiving Council's approval. Council Member Daigle expressed her appreciation to Fire Chief Poster for his efforts. In response to Council Member Henn's questions, Fire Chief Poster reported that Volume 60 - Page 396 City of Newport Beach City Council Study Session March 13, 2012 measurements have not been made regarding the impact on homes in Newport Beach with the newly modified map; however, he noted that if a home abuts vegetation and is at a slope, the homeowner will need to take action. He reiterated that most of the areas already have modification zones in place. Mayor Gardner expressed her appreciation to Fire Chief Poster and his department for the work. City Attorney Harp noted that if Council approves the modified map, Councirs decision is not rebuttable by the State. Jamie Star agreed with the comments made by Fire Chief Poster, added that embers get under shake shingles, noted that houses burn from the inside out, related her experiences during various area fires, and expressed the importance of protecting the whole area. VII. PUBLIC COMMENTS Regarding Closed Session Item D, Jim Mosher discussed the MOU's for the Police and Police Management employees. Jamie Star addressed Council regarding fire rings at Big Corona Beach, suggested that Council adjourn a meeting early so that they can drive to Corona del Mar and experience what residents experience every week during summer, reported that the Police Department posted a crime alert notice in the area because of the increase in car break ins and robberies, urged Council to consider relocating the fire rings to Crystal Cove where there are three miles of unused beaches, suggested that the City install a gate at the Big Corona entrance, believed that residential parking permits should be considered for the area, and claimed that beach users do not spend money in the City. VIII. ADJOURNMENT - The City Council adjourned back into Closed Session at 5:40 p.m. The agenda for the Study Session was posted on March 8, 2012, at 5:20 p.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. 1 lL�1� ,• City Clerk '0& Recording Secretary Mayor Volume 60 - Page 397