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HomeMy WebLinkAbout05/22/2012 - Regular Meeting] 1. 1111 21. 1 �; 6 . City Council Minutes Regular Meeting May 22, 2012 — 7:00 p.m. I. STUDY SESSION - 4:00 p.m. II. CLOSED SESSION - 5:46 p.m. A. CONFERENCE WITH LEGAL COUNSEL EXISTING LITIGATION (Government Code § 54956.9(a)): 1. Paul Matheis v City of Newport Beach Orange County Superior Court Case No. 30- 2011- 00477924 B. CONFERENCE WITH LABOR NEGOTIATORS (Government Code § 54957.6): Agency Designated Representatives: Dave Kiff, City Manager; and Richard Kreisler, Special Counsel Employee Organizations: All Labor Associations: Association of Newport Beach Ocean Lifeguards (ANBOL); Lifeguard Management Association (LMA); Newport Beach Fire Management 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 (NBEL); and Newport Beach Part -Time Unit (UPEC, Local 777) III. RECESS IV. RECONVENE AT 7:00 P.M. FOR REGULAR MEETING V. ROLL CALL Present: Council Member Hill, Council Member Rosansky, Mayor Pro Tem Curry, Mayor Gardner, Council Member Selich, Council Member Henn, Council Member Daigle VI. CLOSED SESSION REPORT - City Attorney Harp reported that there were no reportable actions VII. PLEDGE OF ALLEGIANCE - Council Member Henn VIII. INVOCATION - Ms. Lynda Robison, Second Church of Christ Scientist M Volume 60 - Page 462 City of Newport Beach City Council Minutes May 22, 2012 OPIS Network's Helping 100 Businesses for 100 Days - Award Winner - Norm Bour, Community Development Director for OPIS Network, referenced a recent program for Helping 100 businesses for 100 days, thanked the City and Council for helping the business community, and recognized this year's award winner; Nora Eastman. Ms. Eastman reported on the success of the program and stated that it gave her business a chance to create value for their services. Proclamation to recognize Brian Moore, Deputy District Engineer with the Army Corps of Engineers, Los Angeles District, for his many years of service to the Corps, and for his dedication and support of Newport Beach projects - Mayor Gardner read the proclamation. City Manager Kiff reported that staff could not have succeeded with the dredging project without Brian Moore's dedication and assistance in securing funding. He expressed appreciation to Mr. Moore on behalf of the City. It was noted that Mr. Moore was not in attendance and that the proclamation will be mailed to him. Y— NOTICE TO THE PUBLIC NJ. CITY COUNCIL ANNOUNCEMENTS OR MATTERS WHICH COUNCIL MEMBERS WOULD LIKE PLACED ON A FUTURE AGENDA FOR DISCUSSION, ACTION OR REPORT (NON - DISCUSSION ITEM) Council Member Hill announced that the month of May is designated as National Nurse Month and that Hoag Hospital has announced their selection of their Nurse of the Year, Ruth Ann Marquez. He provided her background and congratulated her on behalf of the City. He further highlighted the Choose Nursing, Choose Hoag Program and encouraged all Newport Beach citizens to become involved with Hoag Hospital and help continue to support its programs. Council Member Rosansky reported that he attended an Orange County Transportation Authority (OCTA) Board of Directors meeting in which the 19th Street Bridge was discussed. He indicated that, after speaking to the Board, along with Deputy Public Works Director Webb and Assistant City Attorney Mulvihill, the Board agreed to suspend their action for sir months to allow Newport Beach, Costa Mesa, and Huntington Beach an opportunity to work out an agreement and to address the traffic situation that removal of the bridge will create. Mayor Pro Tern Curry reported that he participated in the Orange County Tourism Council meeting, walked through the Coastline Community College building which is currently under construction, attended the Library Distinguished Speakers Series and discussed the program, participated in Relay for Life, welcomed attendees at the Field of Honor, and represented the City during Taiwanese - American Heritage Week. Council Member Daigle reported that former Newport Beach Planning Commissioner, Barry Eaton, was recognized by the Orange County Chapter of the American Planning Association (APA) for his post - retirement community volunteer work. She listed his accomplishments and contributions throughout his career and addressed specific contributions that won Mr. Eaton his recognition. Council Member Selich announced that the Balboa Island Parade will be held on Sunday, June 3, from 11:00 a.m. to 2:00 p.m. Mayor Gardner announced the that a dedication ceremony for the opening of the Buck Gully Trail will be held on May 30; and the Corona del Mar 5K will be held on Saturday, June 2. She advised residents to be on the lookout in their mail for the Newport Navigator which lists the various summer programs administered by the Recreation and Senior Services Department. Volume 60 - Page 463 City of Newport Beach City Council Minutes May 22, 2012 XII. CONSENT CALENDAR A. READING OF MINUTES /ORDINANCES AND RESOLUTIONS 1. MINUTES FOR THE MAY 8, 2012 STUDY SESSION AND REGULAR MEETING. [100 -20121 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 the City Clerk to read by title only. B. ORDINANCE FOR ADOPTION SECOND READING OF AN ORDINANCE REPEALING THE CITY S VEHICLE ADDRESSED SOLICITATION LAW, NEWPORT BEACH MUNICIPAL CODE, SECTION 10.62. [100 -20121 Conduct second reading and adopt Ordinance No. 2012 -12 regarding the repeal of the City's Vehicle Addressed Solicitation Law. D. CONTRACTS AND AGREEMENTS LIFEGUARD HEADQUARTERS REHABILITATION - ARCHITECTURAL AND ENGINEERING DESIGN SERVICES - APPROVAL OF PROFESSIONAL SERVICES AGREEMENT WITH RRM DESIGN GROUP (C- 5130). [381100 -2012[ Approve a Professional Services Agreement (PSA) RRM Design Group of San Clemente for Lifeguard Headquarters Rehabilitation Architectural and Engineering Design Services at a not -to- exceed price of $266,090.00, and authorize the Mayor and the City Clerk to execute the Agreement 8. 19TH STREET TIDE GATE RETROFIT - AWARD OF CONTRACT NO. 4773. [381100 -20121 a) Approve the project drawings and specifications, b) award Contract No. 4773 to Excel Paving Company for the total bid price of $182,501.00, and authorize the Mayor and City Clerk to execute the contract; and c) establish a contingency of $27,375.00 (approximately 15 percent) to cover the cost of unforeseen work. 9. JAMBOREE ROAD SIGNAL SYNCHRONIZATION COOPERATIVE AGREEMENT (C- 5131). [381100 -20121 Approve Cooperative Agreement with the Cities of Irvine and Tustin, and the State of California for the engineering and construction of the Jamboree Road Traffic Signal Synchronization Project. E. MISCELLANEOUS 10. PLANNING COMMISSION AGENDA FOR MAY 17, 2012. [100 -2012] Receive and file. 11. CONFIRMATION OF VOTING DELEGATE FOR THE 2012 LEAGUE OF CALIFORNIA CITIES (LLC) ANNUAL CONFERENCE - SEPTEMBER 5 -7, 2012, SAN DIEGO. [100 -20121 Confirm Mayor Pro Tem Keith Curry's designation as the City's Voting Delegate at the Annual League of California Cities Conference to be held from September 5 -7, 2012, in San Diego. Volume 60 - Page 464 City of Newport Beach City Council Minutes May 22, 2012 12. STREET TREE DESIGNATION - QUIET COVE. [100 -20121 Municipal Operations staff recommends that the City Council consider the recommendation from the Parks, Beaches, and Recreation (PB &R) Commission, and approve a change in Street Tree Designation for Quiet Cove from the Hong Kong Orchid (Bauhinia blakena) to the Australian Willow (Geijera parviflora). 13. REQUEST TO RETAIN PRIVATE IMPROVEMENTS IN THE PUBLIC RIGHT -OF- WAY AT 701 AND 7011/2 ORCHID AVENUE. [100 -20121 Waive City Council Policy L- 6, Private Encroachments in the Public Rights -of -Way, to allow the existing planter wall and entry walkway with steps, all of which encroach in excess of 1 -foot into the Fourth Avenue public right -of -way; provided the property owner of 701 and 701 %2 Orchid Avenue enter into an Encroachment Agreement with the City to maintain these private improvements within the Public Right -of -Way and that all conditions of the Encroachment Permit process are met. Motion by Mayor Pro Tem Curry, seconded by Council Member Rosansky to approve the Consent Calendar, except for the items removed (4, 5, 6, 14 & 15). The motion carried by the following roll call vote: Ayes: Council Member Hill, Council Member Rosansky, Mayor Pro Tem Curry, Mayor Gardner, Council Member Selich, Council Member Henn, Council Member Daigle XIII. ITEMS REMOVED FROM THE CONSENT CALENDAR 4. HEALTHY EATING ACTIVE LIVING (HEAL) CAMPAIGN. [100 -20121 Mayor Gardner commended staff, noting that this campaign is good for the City's employees and residents. Motion by Mayor Gardner, seconded by Mayor Pro Tem Curry to adopt Resolution No. 2012 -33 A Resolution of the City Council of the City of Newport Beach to become a Healthy Eating Active Living (HEAL) City. The motion carried by the following roll call vote: Ayes: Council Member Hill, Council Member Rosansky, Mayor Pro Tem Curry, Mayor Gardner, Council Member Selich, Council Member Henn, Council Member Daigle AMENDMENT OF THE AGREEMENT FOR PARKING METER SERVICES BETWEEN THE CITY OF NEWPORT BEACH AND CENTRAL PARKING SYSTEM, INC. (CPS), DATED MARCH 31, 2011 (ORIGINAL AGREEMENT) (C- 4767). [381100 -20121 Finance Director McCraner provided the staff report report, stating that Central Parking System, Inc. (CPS) asked that staff look at the actual ending revenue for 2011 and consider rearranging the payment structure. She reviewed the proposed changes to the contract and recommended Council approval. Discussion ensued relative to the payment of the infrastructure and leases. Council Member Rosansky addressed transfer of risks, noted ambivalence on the issue, and stated his expectations that CPS will continue to do a good job. Volume 60 - Page 465 City of Newport Beach City Council Minutes May 22, 2012 Motion by Council Member Rosansky, seconded by Mayor Pro Tem Curry to approve an amendment to the Agreement which would 1) pay CPS $700,000 annually for its services, 2) authorize the Finance Director to pay approximately $618,000 to cash fund the capital costs of the parking meter equipment and infrastructure, saving the City approximately $240,000 in finance charges over the terms of the equipment leases, and 3) authorize the City Manager to appropriate $618,000 from the FY 2011 -12 General Fund operational savings (010 -3605) to be expended for the purchase of all parking meter equipment and infrastructure, and authorize the Mayor and City Cleric to sign the Agreement. Jim Mosher expressed concerns with the proposed changes and incentives. City Manager Kiff commented on the benefits of convenience to customers by contracting out this service to CPS. The motion carried by the following roll call vote: Ayes: Council Member Hill, Council Member Rosansky, Mayor Pro Tem Curry, Mayor Gardner, Council Member Selich, Council Member Henn. Council Member Daigle 6. AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT WITH BONTERRA CONSULTING FOR THE PREPARATION OF THE ENVIRONMENTAL IMPACT REPORT (EIR) FOR THE 401 -ACRE NEWPORT BANNING RANCH PROJECT GENERALLY LOCATED BETWEEN THE 4900 -5200 BLOCK OF WEST COAST HIGHWAY AND WESTERN TERMINUS OF 19TH STREET (C- 4163). [38100 -20121 Following Jim Mosher expressing concern that Council Member Hill may have a conflict of interest, Council Member Hill reported that he owns stock in an oil company. He recused himself and left the dais. Mr. Mosher expressed concern with providing extra compensation to a contractor after services have been rendered and expressed the opinion that BonTerra has done a poor job. Council Member Daigle noted that there were 168 comment letters that the consultant needed to respond to and suggested that they itemize their proposal differently in the future. She pointed out that the report indicates that BonTerra attended some public meetings but requested confirmation. She noted that a monitoring /reporting program was conducted, and felt that they need to be compensated for their work. Further, she pointed out that part of the proposed billing regarding attending public meetings relates to future meetings. Steve Ray, Executive Director of the Banning Ranch Conservancy, believed that if a good job had been done on the Environmental Impact Report (EIR), there would not be 168 public comment letters. He questioned why mitigation monitoring and other processes were not accounted for in the beginning. Motion by Mayor Pro Tem Curry, seconded by Council Member Henn to approve the amendment to the Professional Services Agreement and authorize the Mayor and City Clerk to execute the Agreement. The motion carried by the following roll call vote: Ayes: Council Member Rosansky, Mayor Pro Tem Curry, Mayor Gardner, Council Member Selich, Council Member Henn, Council Member Daigle 14. FY 12 -13 SPECIAL EVENT SUPPORT RECOMMENDATIONS. [100 -20121 Volume 60 - Page 466 City of Newport Beach City Council Minutes May 22, 2012 Public Information Manager Finnigan highlighted the multi -step process in formulating the Special Events Advisory Committee (SEAC) recommendations. She reported that the City recommends supporting the listed community events for a total of $180,560. Discussion ensued regarding the evaluation process and amount asked for by the various events. Council Member Rosansky expressed concern that there was no information relative to what organizations have received in the past. He believed that some of the events are worthy of support by the City but expressed concern with the methodology used in allocating funds. Mayor Gardner questioned whether the recommendation should come back after consideration of the budget, expressed concern with inconsistencies, and wondered if the City should be participating in this process. Council Member Daigle questioned whether this is a role for Visit Newport Beach, Inc. (VNB). City Manager Kiff stated that this could be something to consider going forward; however, the City cannot give direction to VNB. Mayor Pro Tern Curry expressed concern with the process and funding allocation, although he agreed that some of the events are worthy of City support. Council Member Hill believed that there is not enough study of the request versus the need or appropriateness. Council Member Henn expressed the opinion that the evaluation and ranking was well thought out, but the allocation of funds seems arbitrary. He referenced the Newport Beach Film Festival and emphasized the need for a mechanism to fund and support arts and culture in the City. Mayor Gardner felt that the events being supported should be local events, noting that the Race for the Cure is not a local organization and is supported nationally. Assistant City Manager Smith reported that each SEAC member scored the applicants based on specific criteria and the scores were then averaged to develop a ranking. She stated that the Committee did a great job, but staff believes the process is flawed. Public Information Manager Finnigan read the criteria that was considered by the Committee. Discussion ensued relative to the development of percentages and the total budget allocated. Gregg Schwenk, CEO and Executive Director of the Newport Beach Film Festival, requested full funding for next year, presented highlights of the recent event including number of participants, number of hotel rooms booked, number of restaurants participating, marketing, outreach and volunteers. In response to Council Member Henn's question, Mr. Schwenk noted that he will present a formal report to Council regarding the economic impact of the event at a later date. Bernie Svalstad, Vice President of the Corona del Mar Chamber of Commerce, addressed the economic impact of the Christmas Walk for businesses in Corona del Mar. He reported that the event pays the City $2,500 in fees, referenced the amount approved through this process, and asked that Council consider increasing the City's support to $6,000. He stated that the CdM Chamber helps the City year -round and discussed the money raised through the Corona del Mar 5K for the Recreation Department. Jim Walker, Restaurant Association and owner of the Bungalow Restaurant, believed that there is a conflict between charitable organizations and non - charitable organizations, and expressed the opinion that they should be two separate groups. He spoke in support of Restaurant Week. Diane Daruty, President and Race Director for the Newport -Mesa Spirit Run, described the Volume 60 - Page 467 City of Newport Beach City Council Minutes May 22, 2012 organization and discussed their value to local schools. She addressed the application process and criteria used, volunteers, and years of revenue for the City. She encouraged the City's continued participation. Lisa Walter, Executive Director of Susan G. Komen Race for the Cure in Orange County; emphasized that although the event is nationally known, the Orange County Chapter is a local organization providing local benefits. She commended SEAC and Council for their consideration and asked Council to consider increasing its support to 706/o of the request. Jim Mosher expressed concern regarding the flawed process and questioned the support allocated for the Newport Beach Film Festival. Chandler Bell, Chairman of the Newport Beach Chamber of Commerce, noted that the Newport Beach Chamber of Commerce supports two of the events and promotes economic opportunity of the City. He urged approval of staff's recommendations. Mayor Gardner proposed giving no event more than they received last year, noting that this would free up almost $20,000. Council Member Rosansky expressed support for allocating $14,000 to the Spirit Run, indicating that he could not justify doubling their funding while the other events are reduced. He commented that he would like to see the Newport Beach Film Festival taken off the list in the future and possibly placed in the budget as a line item. He indicated support for the proposed allotment to the Newport Beach Film Festival and the Boat Parade. A straw vote of Council resulted in the majority supporting $125,000 for the Newport Beach Film Festival, as well as $35,000 for the Boat Parade. Council Member Daigle stated support for staff recommendations as presented. Following discussion, it was the consensus of Council to allocate $10,000 to the Newport to Ensenada Race (Council Member Henn agreed to subsidize $1,000 out of his District discretionary fund). It was the consensus of Council to confirm the event funding allocations, as follows Christmas Boat Parade: $35,000 Newport Beach Film Festival: $125,000 Susan G. Komen: $10,000 Newport -Mesa Spirit Run: $14,000 Balboa Island Parade: $1200 Christmas Walk: $6,000 Taste of Newport: $5,000 Heritage Run: $300 from District 2 funds and $300 from District 3 funds Restaurant Week: $6,000 Newport to Ensenada Race: $10,000, and $1,000 from District 1 funds Mayor Pro Tern Curry noted that some consider this an entitlement and stressed the need for change going forward. He stated that a variety of projects have been funded that both enhance the community and create public value. He emphasized that Newport Beach would not be the same City without some of these events. Council Member Henn commented on the need for local, charitable events and the need to support the spirit of volunteerism within the City. He felt that supporting other types of events Volume 60 - Page 468 City of Newport Beach City Council Minutes May 22, 2012 (i.e. cultural, signature, and business - related events) need further consideration during a future study session. Council Member Daigle indicated support for staff recommendations and expressed the opinion that it would be beneficial to involve VNB in the future. Council Member Selich noted that the Christmas Boat Parade, Newport Beach Film Festival, and the Newport to Ensenada Race are signature events for the City and should be supported. Council Member Hill suggested that they be considered as line items within the budget, and agreed with the integration with VNB. Motion by Council Member Hill, seconded by Mayor Pro Tem Curry to approve the Special Event Support funding levels as listed above, and authorize staff to execute agreements with each event organizer. The motion carried by the following roll call vote: Ayes: Council Member Hill, Council Member Rosansky, Mayor Pro Tem Curry, Council Member Selich, Council Member Henn Noes: Mayor Gardner, Council Member Daigle 15. ASSIGNMENT OF BALBOA BAY CLUB GROUND LEASE (C-519).[381100-20121 Council Member Hill recused himself and left the dais since he lives within 500 -feet of Balboa Bay Club. Jim Mosher asked if any of the other Council Members have conflicts. He referenced problems addressed by the City Auditor relative to the number of public boat slips available and the use of the accounting year. He questioned how action can be taken if the current tenant is not in compliance with the lease terms and whether the new tenant will be required to comply. David Wooten, CEO of the Balboa Bay Club, noted that he does not know the number of slips required by the lease, but addressed the amount of revenue received by the City from boat slips. City Manager Kiff noted that boats are getting bigger and indicated that the lease should accommodate the appropriate number of boat slips. Motion by Mayor Pro Tem Curry, seconded by Council Member Rosansky to a) approve the proposed assignment of the Balboa Bay Club ground lease from Balboa Bay Club, Inc., to Todd M. Pickup and Devon R. Martin as trustees of the Vintage Trust II, dated July 19, 2007 and find that Balboa Bay Club, Inc., is not currently in default under the Ground Lease; and b) authorize the Nlayor and the City Clerk to sign the Estoppel Certificate and Consent to Ground Lease Assignment on behalf of the City. The motion carried by the following roll call vote: Ayes: Council Member Rosansky, Mayor Pro Tem Curry, Mayor Gardner, Council Member Selich, Council Member Henn, Council Member Daigle XIV. PUBLIC COMMENTS Bettina Deininger commented on the existing City Hall property and the decline of Lido Village. She believed that having rental units on the current site is not the best use for the land and that the property is not being marketed properly. She believed that a boutique hotel may be more viable and asked Council to abandon the idea of rental units and a parking garage. Volume 60 - Page 469 City of Newport Beach City Council Minutes May 22,2012 Denys Oberman expressed opposition to the plan to build rental units and a parking garage, noting that this is not what the community desires. She believed that an upscale, boutique hotel is the best use for the site and would help in the successful revitalization of the area. She addressed benefits to the City and asked that Council commit to the suggested use and seek developers accordingly. Leland Iverson agreed with the previous speakers, noting that the proposed use would serve as a catalyst for redevelopment in the area. Linda Klein Formuzis expressed support of having an upscale hotel on the existing City Hall property and not apartments with a parking garage. She believed that there is community support for the idea. Jim Mosher noted that several Council Members attended a Stop Polluting Our Newport (SPON) meeting, stated that someone complained to him about a problem they had relative to a request to view Sunset Ridge Park plans, and referenced the Public Records Act (PRA). City Attorney Harp requested that Mr. Mosher provide additional details on the matter to ensure that the subject employee is properly trained on the PRA. XV. ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES Council Member Daigle reported that she attended the Tourism Conference and there was a presentation relative to how to properly refer to John Wayne Airport (JWA). She requested that the issue of naming JWA be addressed at an upcoming Aviation Committee meeting. Council Member Henn reported that the Balboa Village Citizens Advisory Panel (CAP) met on May 15 at the ExplorOcean Nautical Museum and considered a draft implementation report. He added that discussion also included an evaluation of the brand and vision for Balboa Village, and recommendations on economic development and parking governance. He also reported that the Tidelands Management Committee met on May 16 at the OASIS Senior Center and considered Linda Isle Lagoon dredging and the Tidelands Infrastructure Management Plan. Council Member Rosansky reported that the first meeting of the Charter Update Committee will be held on May 24 at 4:00 p.m. in the Council Chambers and encouraged those interested to attend. Mayor Gardner reported the the Coastal/Bay Water Quality Committee received a presentation on dolphins and encouraged residents who observe them to report their sightings to dolphinproject@hotmail.com. Without objection, it was the consensus of the City Council to consider Item S21 (Labor Negotiations) out of the published agenda sequence. XVII. CURRENT BUSINESS S21. LABOR AGREEMENT: NEWPORT BEACH FIREFIGHTERS ASSOCIATION (C- 2060). [381100 -20121 City Manager Kiff discussed the term of the Memorandum of Understanding (MOU) between the City and the Newport Beach Firefighters Association (NBFA), additional pension contributions, new tier for miscellaneous and safety members, two cost -of -living adjustments, medical insurance contributions, and training reimbursements. He expressed appreciation to Council and the NBFA for their cooperation. Mayor Pro Tem Curry thanked staff and the NBFA for making significant contributions to their pensions. He congratulated City staff and the Council for their partnership and sacrifices to help Volume 60 - Page 470 City of Newport Beach City Council Minutes May 22, 2012 the City preserve its financial sustainability. Council Member Daigle noted that labor negotiations are never easy and commended the NBFA. Council Member Hill expressed appreciation to those involved. Jim Mosher referenced the hybrid formula and indicated that consideration of the resolution was not indicated on the agenda. City Manager Kiff reported that the hybrid plan is defined outside of the Ca1PERS plan, noting that it would be a supplement that the City would embark upon from a private provider: City Attorney Harp noted that the description on the agenda.is broad enough to cover the related MOU and.resolution and that there is no issue with the Brown Act. Motion by Mavor Pro Tern Curry, seconded by Council Member Rosansky to adopt Resolution No. 2012 -36 to modify the paying and reporting of the value of the employer paid member contribution to the California Public Employees Retirement System (CalPERS) for employees represented by the Newport Beach Firefighters Association (NBFA). The motion carried by the following roll call vote: Ayes: Council Member Hill, Council Member Rosansky, Mayor Pro Tern Curry, Mayor Gardner, Council Member Selich, Council Member Henn, Council Member Daigle Motion by Council Member Rosanskv, seconded by Mayor Pro Tern Curry to authorize Mayor Gardner to execute a Memorandum of Understanding (MOU) with the Newport Beach Firefighters Association (NBFA). The motion carried by the following roll call vote: Ayes: Council Member Hill, Council Member Rosansky, Mayor Pro Tern Curry, Mayor Gardner, Council Member Selich, Council Member Henn, Council Member Daigle XVI. PUBLIC HEARING 16. ANNUAL REVIEW OF NEWPORT HARBOR LUTHERAN CHURCH DEVELOPMENT AGREEMENT (PA2009 -137) LOCATED AT 798 DOVER DRIVE (C- 3152). [381100 -2012] Assistant Planner Fern Nueno provided a PowerPoint presentation to highlight the project location, initial approval of the agreement, church facilities, and approval of a limited permit for temporary classroom facilities and a telecomm permit. Mayor Gardner opened the public hearing. Jim Mosher expressed concern that the location did not have enough site notices posted. Hearing no further testimony, she closed the public hearing. Motion by Mayor Pro Tern Curry, seconded by Council Member Rosansky to a) find that the applicant has demonstrated good faith compliance with the terms of the Development Agreement; and b) receive and file the Annual Report of the Development Agreement for Newport Harbor Lutheran Church. The motion carried by the following roll call vote: Volume 60 - Page 471 City of Newport Beach City Council Minutes May 22, 2012 Ayes: Council Member Hill, Council Member Rosansky, Mayor Pro Tem Curry, Mayor Gardner, Council Member SeLich, Council Member Henn, Council Member Daigle XVII. CURRENT BUSINESS (Continued) 17. IRVINE AVENUE MEDIAN LANDSCAPE IMPROVEMENTS - AWARD OF CONTRACT NO. 5035.1381100-20121 Deputy Public Works Director Webb provided a staff report and reported that the conceptual reforestation plan was considered by a joint commission from Costa Mesa and Newport Beach. He indicated that they selected African Tulip trees and palm trees, but Council needed to finalize the selection of the palm trees. He addressed various options depending on the type of palm tree selected, the number of bidders participating, the bid selected, and staff recommendations. Following discussion regarding the cost for the various palm trees and the amount of debris various palm trees create, it was the consensus of Council to select the Date palm tree. Regarding the possibility of the City of Costa Mesa contributing to the cost for tree replacement, Municipal Operations Director Harmon reported that the agreement shares maintenance costs for the median but requires Newport Beach to be responsible for replacement of the trees. Council Member Rosansky expressed concern regarding making a decision on this item prior to legal review of the agreement. City Attorney Harp suggested moving the item to the end of the agenda to allow him the opportunity to review the agreement. Dan Purcell stated that he looks forward to the urban reforestation plan and believed consideration should be given to insects and birds associated with flowering trees. Following City Attorney Harp's return to the meeting after Item 20 was discussed, he reported that he reviewed the agreement with the City of Costa Mesa and noted that it indicates that Costa Mesa is not liable for costs associated with the replacement of trees. He further addressed the termination provision in the agreement. Council Member Rosansky emphasized the need to renegotiate the agreement. Motion by Council Member Rosanskv, seconded by Council Member Henn to a) select the Date Palm Tree species to be installed under the contract; b) approve the project drawings and specifications; c) award Contract No. 5035 to KASA Construction, Inc. (KASA) for the total bid price of $308,075.00, and authorize the Mayor and City Clerk to execute the contract; and d) establish a contingency of $32,622.23 (approximately 10 percent) to cover the cost of unforeseen work and pay for additional crack repair; and e) approve Budget Amendment No. 12BA -038 appropriating $360,000.00 to Account No. 7013- C2002050 (Irvine Avenue Medians) from General Fund operational savings, Account No. 010 -3605. The motion carried by the following roll call vote: Ayes: Council Member Hill, Council Member Rosansky, Mayor Pro Tem Curry, Mayor Gardner, Council Member Selich, Council Member Henn, Council Member Daigle 18. APPOINTMENTS TO THE CHARTER UPDATE COMMITTEE. [331100120121 Jim Mosher believed that appointments should not be made at this time and that the seats should be considered as unscheduled vacancies, and expressed concern with the meetings starting at 4:00 p.m. Volume 60 - Page 472 City of Newport Beach City Council Minutes May 22, 2012 Council Member Hill noted that he has worked all his life and has never had a problem attending important meetings. He expressed disagreement with Mr. Mosher's assumptions. Council Member Henn believed that the individuals being appointed will be able to get up to speed with the City's Charter and expressed his confidence in the process. Motion by Council Member Rosansky, seconded by Mayor Pro Tern Curry to a) adopt Resolutions No. 2012 -34, replacing Exhibit 2 to Resolution No. 2012 -32; b) confirm the Mayor's appointments of Council Member Steve Rosansky as the non - voting Council liaison and Mayor Nancy Gardner as the alternate non- voting Council liaison; c) waive the condition in City Council Policy A -2 that prevents appointees from serving on more than one standing City Board, Commission or Committee and, if the City Council does not receive at least 14 applications to serve on the Charter Update Committee, waive the requirement of City Council Policy A -2 that provides that two or more candidates be considered for each seat; and d) conduct the appointments by paper ballot provided by the City Clerk. The motion carried by the following roll call vote: Ayes: Council Member Hill, Council Member Rosansky, Mayor Pro Tem Curry, Mayor Gardner, Council Member Selich, Council Member Henn, Council Member Daigle The City Council utilized paper ballots to vote for the seven members on the Charter Update Committee. City Clerk Brown read the ballot votes as follows: David Bahnsen: Hill, Rosansky, Henn, Daigle, Curry, and Mayor Gardner Paul Glowienke: Hill, Rosansky, Selich, Henn, Curry, and Mayor Gardner Jeff Herdman: HiJI, Rosansky, Selich, Daigle, and Curry Suzanne Savary: Hill, Rosansky, Selich, Henn, Daigle, Curry, and Mayor Gardner Joseph Stauleton: Hill, Rosansky, Selich, Henn, Daigle, Curry, and Mayor Gardner Tim Stoaks: Hill, Selich, Henn, Daigle, and Mayor Gardner Dan Wampole: Rosansky, Selich, Henn, Daigle, Curry, and Mayor Gardner Paul Watkins: Hill, Rosansky, Selich, Henn, Daigle, Curry, and Mayor Gardner City Clerk Brown announced that David Bahnsen, Paul Glowienke, Suzanne Savary, Joseph Stapleton, Dan Wampole, and Paul Watkins received either six or seven votes and, therefore, are appointed to the Charter Update Committee. City Clerk Brown announced that the second vote will be between Jeff Herdman and Tim Stoaks, and read the ballot votes as follows: Jeff Herdman: Rosansky, Selich, Henn, Daigle, and Curry Tim Stoaks: Hill and Mayor Gardner City Clerk Brown announced that Jeff Herdman is appointed to the Charter Update Committee. Mayor Gardner indicated that she would like to appoint Paul Watkins as the Chairperson to the Charter Update Committee. Motion by Mayor Pro Tern Curry, seconded by Council Member Rosanskv to appoint Paul Watkins as the Chairperson to the Charter Update Committee. Volume 60 - Page 473 City of Newport Beach City Council Minutes May 22, 2012 The motion carried by the following roll call vote: Ayes: Council Member Hill, Council Member Rosansky, Mayor Pro Tern Curry, Mayor Gardner, Council Member Selich, Council Member Henn, Council Member Daigle 19. QUARTERLY BUSINESS REPORT - JANUARY THROUGH MARCH 2012. [10012012] City Manager Kiff reported that the Quarterly Business Report (QBR) is available on the City's website. Council Member Henn encouraged all homeowners associations and interested parties to review the report and inform their members of the content of the QBR. Steve Ray, Executive Director of the Banning Ranch Conservancy, stated that the QBR references a development on Banning Ranch when it should mention the area as permanent open space and park. He suggested utilizing the Environmental Quality Affairs Committee (EQAC) to consider saving Banning Ranch as open space. 20. SECOND MEETING OF THE FY 2012 -13 PROPOSED BUDGET. [10012012] City Manager Kiff utilized a PowerPoint presentation and addressed City accomplishments from 2009 to date and core budget principles. Finance Director McCraner addressed department key changes and overall budgets, personnel changes, and program changes. Discussion ensued relative to the backlog in the reforestation project and timeline for catching up, the status of transitioning surveying services to the private sector, and identification of funds for training within the Fire Department. Regarding the Real Property Administrator position, Community Development Director Brandt noted that the City's Building Official has a strong real estate background and that the position would be a good fit in the Community Development Department since there is currently a manager to oversee the position. The position would work closely with Finance and Public Works and will transcend many departments. City Manager Kiff presented an updated Capital Improvement Program (CIP) recommendation checklist which was updated after the afternoon Study Session. Mayor Pro Tern Curry congratulated staff for its work on the budget, noting the City's level of reserves, surplus, revenues, and staffing levels. In response to Council questions, Finance Director McCraner addressed the GASB changes regarding unfunded pension liabilities and the requirement for additional disclosures. City Manager Kiff reported that ABLE money will be included in revenue estimates for next year. Further, he commented on the pros and cons of a two -year budget cycle. Jim Mosher addressed the requirements in the City Charter regarding submission of the budget and questioned whether the PowerPoint presentation was the official budget document being submitted by the City Manager for review. He commented on the importance of providing budget details regarding the definition of NOC and projections. City Manager Kiff reported that NOC means "Not Otherwise Classified" and noted that all the budget documents have been uploaded to the City's website and were available at the Libraries and the City Clerk's Office. He added that the item will be presented to Council for adoption the first meeting in June. Volume 60 - Page 474 City of Newport Beach City Council Minutes May 22, 2012 Mayor Gardner requested that discussion about the use of reserves be brought back during the mid -year budget review. XVIII. MOTION FOR RECONSIDERATION - None XIX. ADJOURNMENT - Adjourned at 10:18 p.m. in memory of Marina Marrelli and Thomas Fuentes The agenda for the Regular Meeting was posted on.May 17, 2012, at 4:40 p.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. The supplemental agenda for the Regular Meeting was posted on May 18, 2012, at 11:50 p.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. Recording Secretary Mayor ",-. 6 kw-m,- City Clerk Volume 60 - Page 475