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HomeMy WebLinkAbout07/10/2012 - Regular MeetingCity Council Minutes Regular Meeting July 10, 2012 — 7:00 p.m. STUDY SESSION - 4:00 p.m. II. CLOSED SESSION - 5:40 p.m. A. CONFERENCE WITH LEGAL COUNSEL EXISTING LITIGATION (Government Code § 54956.9(a)): Two Matters 1. Sandy Wedgeworth, et al v City of Newport Beach, et al Orange County Superior Court Case No. 30-2011-00493787 2. Paul Matheis, et al v City of Newport Beach, et al Orange County Superior Court Case No. 30-20.11-00477924 B. CONFERENCE WITH LABOR NEGOTIATORS (Government Code § 54957.6): Agency Designated Representative: Dave Kiff; City Manager and Negotiator Employee Organizations: All Labor Associations: Association of Newport Beach Ocean Lifeguards (ANBOL); Newport Beach City Employees Association (NBCEA); Newport Beach Employees League (NBEL); Newport Beach Firefighters Association (NBFA); Newport Beach Fire Management Association (NBFMA); Lifeguard Management Association (NBLMA); Newport Beach Part Time Unit (UPEC, Local 777); Newport Beach Police Association (NBPA); Newport Beach Police Management Association (NBPMA); Newport Beach Professional and Technical Association (NBPTEA) III. RECESS IV. RECONVENED 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 Excused: Council Member Daigle VI. CLOSED SESSION REPORT - City Attorney Harp reported that there are no reportable actions VII. PLEDGE OF ALLEGIANCE - Council Member Hill Volume 60 - Page 515 City of Newport Beach City Council Minutes July 10, 2012 VIII. INVOCATION - Bryan Eckelmann, St. Andrews Presbyterian Church IX. PRESENTATION Heroic Act Award - Phil Castillo - Mayor Gardner read the proclamation and presented it to Phil Castillo. Fire Chief Poster and Lifeguard Operations Assistant Chief Williams presented Mr. Castillo with the Heroic Act Award. X. NOTICE TO THE PUBLIC XI. CITY COUNCIL ANNOUNCEMENTS OR MATTERS WHICH COUNCIL MEMBERS WOULD LIKE PLACED ON A FUTURE AGENDA FOR DISCUSSION, ACTION OR REPORT (NON - Mayor Pro Tem Curry reported that he presented a certificate to Bill Hossfeld, outgoing President of the Newport -Balboa Rotary Club; participated in the Fourth of July Parade at Mariners Park and the American Legion Old Glory Boat Parade; provided the welcoming comments at the Newport Dunes Fourth of July celebration; presided at the installation of John Whitney as the new President of Friends of OASIS; and congratulated Scott Paulsen on his service as the outgoing President to the Friends of OASIS. Council Member Henn reported participating in the Mr. Irrelevant Arrival Party at the Newport Dunes Resort where Chandler Harnish was welcomed to the City; attended the Lowsman's Banquet honoring Chandler Harnish; and attended the Fourth of July celebration at Channel Place Park. He expressed his appreciation to staff and the Newport Beach Police Department for their work during Fourth of July and reported on an upcoming Tidelands Management Committee meeting on July 18, 2012, at 4:00 p.m. at the OASIS Senior Center where discussion will continue on the Tidelands Management Master Plan. Mayor Gardner reported paddling this morning in the Bay and came across two dead Koi, noting that they don't live in salt water. She emphasized that nothing should be placed in the Bay or Ocean that is foreign to it. She referenced the recent Ocean Boulevard lot merger that Council considered on June 26 and requested that staff bring back a report that limits the side easements to be no less than what would have been allowed in the original lots and that the total square footage could not be more than the combined maximum square footage on the merged lots. XII. CONSENT CALENDAR City Manager Kiff clarified that Item 10 should refer to Council Policy I-2, not I-7. He added that staff is recommending pulling Item 12 so that Visit Newport Beach, Inc. (VNB) can provide a presentation. A. READING OF MINUTES/ORDINANCES AND RESOLUTIONS 1. MINUTES FOR THE JUNE 26, 2012 STUDY SESSION AND REGULAR MEETING. [100-2012] Waive reading of subject minutes, approve as amended and order filed. Council Member Henn abstained on this item since he recused himself during a June 26, 2012 Study Session item. 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. Volume 60 - Page 516 City of Newport Beach City Council Minutes July 10, 2012 B. CONTRACTS AND AGREEMENTS 3. TIDEGATE RETROFITS AND UPGRADES - AWARD OF CONTRACT NO. 5116. [381100-2012] a) Approve the project drawings and specifications; b) award Contract No. 5116 to Bah Construction, Inc., for the total bid price of $126,620, and authorize the Mayor and City Clerk to execute the contract; and c) establish a contingency of $18,993 (15 percent) to cover the cost of unforeseen work not included in the original contract. 4. 15TH STREET REHABILITATION PROJECT - OLD NEWPORT BOULEVARD TO REDLANDS AVENUE - AWARD OF CONTRACT NO. 5077. [381100-2012] a) Approve Reimbursement Agreement with the City of Costa Mesa and the City of Newport Beach; b) approve the project drawings and specifications; c) award Contract No. 5077 to All American Asphalt for the total bid price of $303,303 and authorize the Mayor and City Clerk to execute the contract; d) establish a contingency of 545,000 (15 percent) to cover the cost of unforeseen work not included in the original contract; and e) approve Budget Amendment No. 13BA-002 recognizing new revenue (reimbursement funds from the City of Costa Mesa) of $115,000 to Contribution Fund 250-4858 and appropriating $115,000 to Account No. 7251-C2002042. 6. MISCELLANEOUS PAVING REPAIR - BRISTOL STREET SOUTH, NEWPORT COAST DRIVE AND JAMBOREE ROAD AT COAST HIGHWAY SOUTH - AWARD OF CONTRACT NO. 4882. [38/100-2012] a) Approve the project drawings and specification; b) award Contract No. 4882 to PALP, Inc., DBA Excel Paving for the total bid price of $6.537,265.50, and authorize the Mayor .and City Cleric to execute the contract; c) establish a contingency of $65,727 (10 percent) to cover the cost of unforeseen work not included in the original contract; and d) approve Budget Amendment No. 13BA-001 appropriating $43,000 from the Bristol Relinquishment Fund to Major Arterial Street Repairs CIP Account No. 7253-C2002047 and appropriating $140,000 from the unappropriated Measure M Turnback Fund to the Major Arterial Streets Repairs CIP Account No. 7281-C2002047. C. MISCELLANEOUS 7. PLANNING COMMISSION AGENDA FOR JUNE 21, 2012. [100-2012] Receive and file. 8. CIVIC CENTER AUDIO-VISUAL AND INFORMATION TECHNOLOGY EQUIPMENT BUDGET AMENDMENT. [100-2012] Approve Budget Amendment No. 13BA-003 appropriating $1,360,385 from the Cable Franchise Reserve to the Civic Center Fund, Civic Center ITIAV Equipment Account, 7410-C1002041 ($1,018,000 will be used to purchase the audio-visual and information technology equipment necessary for the new Civic Center and the remaining balance of $342,385 will be used to supplement eligible expenditures within the current Civic Center Construction contract). 9. REQUEST TO INSTALL A DRIVEWAY APPROACH AT 1702 PARK AVENUE. [100- 2012] Approve a new 17.5 -foot wide driveway approach for access to the property per City Council Policy L-2, Driveway Approaches, provided the property owner obtains an encroachment permit from the Public Works Department. 11. WAIVE COUNCIL POLICY A-2 - BOARD AND COMMISSION APPOINTMENTS; AND APPOINT A NEW CITY ARTS COMMISSIONER TO FILL THE UNEXPIRED BALANCE OF CITY ARTS COMMISSIONER ROBYN GRANT'S UNEXPIRED Volume 60 - Page 517 City of Newport Beach City Council Minutes July 10, 2012 TERM, WHICH ENDS JUNE 30, 2013. [100-2012] a) Since the City Council made appointments to the City Arts Commission and other Boards and Commissions at the June 26, 2012 City Council Meeting, waive Council Policy A-2 relative to the procedures for handing unscheduled vacancies; b) appoint a new member to the City Arts Commission to fill the unexpired balance of City Arts Commissioner Robyn Grant's term, which expires on June 30, 2013, from the list of applicants that have an application on file with the City Clerk's Office or any person that submits an application by 1:00 p.m. on Friday, July 20, 2012; and c) make the appointment to the City Arts Commission at the July 24, 2012 City Council meeting. Motion by Mayor Pro Tem Curry, seconded by Council Member Rosansky to approve the Consent Calendar, except for the items removed (Items 5, 10, 12 and 13); and noting Council Member Henn's abstention on Item 1. 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 Absent: Council Member Daigle XIII. ITEMS REMOVED FROM THE CONSENT CALENDAR 5. APPROVAL OF AMENDMENT NO. 6 TO PROFESSIONAL SERVICES AGREEMENT WITH SCHMITZ & ASSOCIATES FOR PROJECT PROCESSING ASSISTANCE (C-4546). [381100-2012] Jim Mosher referenced the staff report and expressed the opinion that staff should be performing the duties rather than an outside consultant. He also expressed concerns regarding the quality of work and referenced the California Constitution regarding compensating for services already rendered. Motion by Council Member Curry, seconded by Council Member Rosansky to approve Amendment No. 6 to the Professional Services Agreement with Schmitz & Associates, Inc. of Malibu, California for California Coastal Commission application preparation, processing and support services at an additional contract cost of $52,825, and authorize the Mayor and the City Clerk to execute the Amendment. City Attorney Harp clarified that the contractor is not being paid twice for the same services but for additional and extra work. Therefore, there is no violation of the State Constitution or any other rules. 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 Absent: Council Member Daigle 10. LIBRARY STAFF RECOMMENDATIONS TO THE CITY COUNCIL FOR APPROVAL OF CITY COUNCIL POLICY MANUAL LIBRARY SERVICES POLICY I-2 - USE OF THE NEWPORT BEACH PUBLIC LIBRARY. [100-2012] Jim Mosher noted that the Council Policy number was incorrect and pointed out that the proposal has been approved by the Board of Library Trustees. He referenced the City Charter and believed that Library Policies are not subject to approval by the City Council or staff. Volume 60 - Page 518 City of Newport Beach City Council Minutes July 10, 2012 City Manager Kiff referenced the various City Council Policies regarding the Library and stated that it is appropriate for the City Council to continue to approve them. George Schroeder encouraged Council to approve the item. Dan Purcell commented on Board of Library Trustees meetings and expressed concern that the Central Library lacks adequate bicycle racks. Motion by Council Member Curry, seconded by Council Member Rosansky to approve revisions to Council Policy I-2, as approved by the Board of Library Trustees at their December 5, 2011 Board Meeting, and by the City Attorney's Office on December 22, 2011. 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 Absent: Council Member Daigle 12. VISIT NEWPORT BEACH, INC. (VNB) (C-4961) AND NEWPORT BEACH TOURISM BUSINESS IMPROVEMENT DISTRICT (NBTBID) ANNUAL REPORTS. [38/100-2012] City Manager Kiff introduced the item and deferred to Gary Sherwin of Visit Newport Beach, Inc. (VNB). Gary Sherwin, VNB, provided an update on the industry noting it is doing very well. He acknowledged and introduced Members of the Executive Committee and volunteers. He utilized a PowerPoint Presentation which detailed the fiscal year hotel performance, VNB's brand promise, and the police hospitality training program. In addition, he announced that the Bowl Championship Series will be hosted,by the City of Newport Beach in January 2014 and noted the event's related economic impacts. He addressed the Newport Beach Tourism Business Impro- ement District (TBID) group room night bookings, TBID return on investment, Transient Occupancy Tax (TOT) budget, the 2012-13 organizational priorities, publications produced by VNB, the new kiosk directories, online initiative, mobile applications, various advertisement strategies, and addressed marketing goals and plan. Council Member Henn commended Mr. Sherwin and addressed the organization's broadening of its mission as a community marketing organization, as opposed to a visitor bureau approach. He suggested including the results of the performance measures in next year's presentation, as well as prior year's comparisons on budget numbers. Mayor Pro Tem Curry congratulated Mr. Sherwin on the success of the organization and commented on the importance of the efforts of the organization. Council Member Hill expressed his appreciation to the Board for the work performed Jim Mosher thanked City Manager Kiff for improving the contract with VNB to require reporting and transparency, and reminded the VNB Board of their requirements to file other reports. He commented on the reported decrease in the number of visitors to the City in previous years and their plan to fund its annual meeting. He addressed Brown Act compliance issues regarding TBID meetings. Tom Johnson, Chairman of the Board for VNB, clarified the amount that is budgeted for VNB's annual dinner, noting that it is a one-time per year meeting where the entire community is engaged to review plans for VNB. He noted that there is no obligation for the public to attend their meetings, but that they are allowed, and stated that the organization strives for all the transparency it can. Motion by Council Member Hill, seconded by Council Member Henn to a) approve the Volume 60 - Page 519 City of Newport Beach City Council Minutes July 10, 2012 Fiscal Year 2012-2013 Visit Newport Beach, Inc. Marketing & Business Plan and budget; and b) approve the Fiscal Year 2012-2013 Newport Beach Tourism Business Improvement District Annual Report and budget. 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 Absent: Council Member Daigle 13. CORONA DEL MAR BUSINESS IMPROVEMENT DISTRICT FISCAL YEAR 2012-2013 BOARD APPOINTMENTS. (100-2012) Jim Mosher commented on the member of vacancies versus the number of people appointed, and commented on the applicability of the Streets and Highways Code. He discussed applicable rules and laws, as well as the City Charter. Bernie Svalstad, Corona del Mar BID Chairman, commented on previous elections of Board Members, referenced the BID by-laws and requested clarification regarding the Board Members' terms. City Attorney Harp reported that the Streets and Highways Code is the controlling law when discussing BIDS, noting that State law creates the authority to generate BIDS. Robert Hawkins expressed concern that the BID Chairman does not understand what is going on relative to the terms and believed that there needs to be an understanding about why the changes are occurring. In response to Mayor Gardner's questions, City Attorney Harp explained the one-year formation period for the BID corresponds to the term of the appointments. He added that staff will work with the BIDS to ensure that the by-laws are in conformance. Motion by Council Member Rosansky, seconded by Council Member Henn to appoint the following to the Corona del Mar Business Improvement District Advisory Board of Directors for FY 2012-2013: Bernie Svalstad Newport Financial, Tom Nicholson - Nicholson Companies, Tina Hoover - Hoover Law Office, Jim Walker - The Bungalow Restaurant, Keith Dawson - Dawson & Dawson, Ali Zadeh - The Port Restaurant & Lounge, and Scott Laidlaw - Laidlaw Schultz Architects 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 Absent: Council Member Daigle XIV. PUBLIC COMMENTS - None XV. ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES Council Member Henn reported on the June 28 Neighborhood Revitalization Committee (NRC) meeting where the Committee considered the recommendations of the Balboa Village Citizens' Advisory Panel (CAP) in terms of establishing a new brand promise and brand vision for Balboa Village, as well as other recommendations regarding parking governance and economic development incentives. He reported that the NRC accepted the recommendations of the CAP with minor revisions, and that the recommendations will be brought for consideration before the Harbor Commission and the Planning Commission. Volume 60 - Page 520 City of Newport Beach City Council Minutes July 10, 2012 Subsequently, the item will be considered by the City Council on August 14. He thanked the CAP members, the consultant, and staff for their work. XVI. PUBLIC HEARING 14. AFFORDABLE HOUSING AMENDMENT FOR NEWPORT PLACE PLANNED COMMUNITY LOCATED WITHIN THE AREA BOUNDED BY MACARTHUR BOULEVARD, JAMBOREE ROAD, BIRCH STREET, AND BRISTOL STREET NORTH (PA2011-215). [100-20121 Community Development Director Brandt stated that the item is a follow-up program that is required by the Housing Element that was recently certified by the State and adopted by Council. Assistant Planner Whelan utilized a PowerPoint Presentation that detailed the background and future housing potential. Further, it addressed the project location, surrounding properties, and residential overlay opportunities for properties designated as MUH2. She presented details of the residential overlay, requirements reviewed by the Planning Commission, and provisions for the qualifying projects. She noted that the Planning Commission recommended approval of the PC Amendment and that the Airport Land Use Commission found the amendment in compliance with Airport Land Use Plan. Mayor Gardner noted that when the area was considered during the General Plan process, one of the concerns was creating enough residential areas to supply the amenities that would help support them. However, when the Housing Element was submitted to the State, it noted the need to create the exemptions listed in the staff report. Mayor Gardner opened the public hearing. Linda Tang, The Kennedy Commission, reported that the organization is a coalition of residents and organizations that advocate for the development of housing for lower-income families. She presented written comments, and commended staff for their leadership in encouraging and facilitating the development of affordable homes for lower-income working families. She expressed support for the Planning Commission's recommendation to remove the development constraints for affordable homes by implementing the housing programs in Newport Place. She addressed ensuing public benefits to the community, especially for seniors and working families. Hearing no further testimony, Mayor Gardner closed the public hearing. Motion by Council Member Rosansky, seconded by Mayor Pro Tem Curry to introduce the Ordinance No. 2012-14 adopting the Newport Place Planned Community Development Plan Amendment No. PD2011-005, and pass to second reading on July 24, 2012. 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 Absent: Council Member Daigle XVIL CURRENT BUSINESS 15. SECOND AMENDMENT TO THE AMENDED NEWPORT DUNES SETTLEMENT AGREEMENT (C-2394) AMONG THE CITY OF NEWPORT BEACH, COUNTY OF ORANGE, WATERFRONT RESORT PROPERTIES L.P., AND NEWPORT DUNES MARINA, LLC, LOCATED AT 1131 BACK BAY DRIVE (PA2012-080). [381100-20121 Volume 60 - Page 521 City of Newport Beach City Council Minutes July 10, 2012 Community Development Director Brandt presented details of the report, including negotiations to clarify terms of the existing conditions on the property and some of the provisions where there has been ambiguity relative to fees paid on the remaining obligations. She addressed the property location, boat slips, key changes within the Settlement Agreement, and the concept plan for the Newport Dunes. She noted that the proposed amendment clarifies the amount of remaining trip - fee obligation in conjunction with the construction of the Family Inn. She reported that a settlement payment will be required when the agreement is executed to cover the cost for outside counsel and staff time for the preparation of the amendment. She pointed out that a request for continuance was received from representatives of the Dover Shores Community Association, and that correspondence was received from Robert Hawkins regarding the California Environmental Quality Act (CEQA) determination. She noted that staff is recommending that the proposed Settlement Agreement be found to be categorically exempt from CEQA as a Class 5 exemption based on a minor change in the land use limitations. In response to Mayor Gardner's question regarding charter boats, Andrew Theodorou, General Manager of the Newport Dunes, reported that they currently have four Duffy boats and a couple of fishing boats. He reported that the Duffy boats belong to Newport Dunes and they would like to continue to use them. He noted that they have no interest in allowing large party vessels to enter the area. Regarding Recreational Vehicle (RV) parking spaces, Mr. Theodorou reported that rental spaces are limited during the week and that weekends are busier. He added that parking is for daily, boat launch trailer use. Council Member Henn asked about the definition of "charter" and the hours of use. Mr. Theodorou defined "charter" and reported that charter use will be allowed 6:00 a.m. until 10:00 p.m. He addressed the sizes of vessels and reiterated that they are not interested in allowing party boats, but smaller vessels with a capacity of up to twelve individuals. Bert Ohlig stated that the area is public tidelands designated for public access. He expressed concerns regarding not completely defining the changes, discrepancies regarding the way Newport Dunes is conducting business, and with the recommendations. He also expressed concerns with the noise study and assumptions made. He addressed the proximity to residences and the area where the study was conducted, and believed that sound levels affecting his property would be considerably more than what the study suggests. He requested a definition of what constitutes a charter vessel and asked for assistance to ensure that Newport Dunes complies with current conditions before any changes are made. In addition, he reported there was no outreach to the community and expressed concern with the lack of compliance by Newport Dunes to date. Dan Purcell commented on the number of boats in the Harbor, encouraged low -impact uses on the Harbor, and expressed concerns with bait -and -switch type projects. Anders Folkedal stated concerns with noise levels and the lack of compliance by the Newport Dunes with their current agreement. He spoke in opposition to the use of fishing charters early in the morning and requested clear definitions. He addressed clubhouse use for private parties and requested that Council continue the item until some of the issues raised are resolved. Warren Parchan, head of the Beach and Architectural Committee for Dover Shores Community Association, expressed concerns with the use of paddle boats and kayaks entering private waterways and beaches, as well as noise and liability issues. Robert Hawkins, attorney representing several groups, referenced his comment letter and the Settlement Agreement relative to the entitlements. He reported that the staff report reiterates what was in the original Settlement Agreement and updated in 1990, but indicated that there has been no environmental review since that time. He believed that the proposed Family Inn and restaurant uses need environmental review and addressed noise and traffic issues. He stressed the need for full analysis of potential impacts. Volume 60 - Page 522 City of Newport Beach City Council Minutes July 10, 2012 Mark Miller agreed with the need to review noise impacts Ken Kramer, Attorney representing the applicant, noted that the amendment was initiated by the City, not the property owners. He reported that the current owners acquired the property in 2002 and that the issues were associated with the prior owners. He stated that the City requested that Newport Dunes document what was currently on the property and addressed the process. He addressed the purpose for the charter boat request, reiterated that the owner's do not anticipate allowing large charter boats in the area, and noted that there are existing physical limitations but stated this is not a critical requirement. He reported that the main issues in the document were established by the City which included establishing a square footage limitation as per the General Plan and determining what had happened with the fair -share and traffic phasing fees. He acknowledged resident concerns regarding noise and use of the tent. In response to Mayor Gardner, Mr. Theodorou noted that the marina clubhouse is solely for the use of marina tenants and closes at 10:00 p.m. He affirmed that people can rent kayaks and paddle boards, and instructions are provided to the renters; however, additional information will be included regarding the prohibition of using private beaches and waterways. In response to Council Member Selich's questions, Mr. Kramer affirmed the item was initiated by the City and addressed issues regarding the restaurants. He addressed the number of boat trailer spaces, parking for overall uses, and parts of the original agreement that have not been built. In response to :Mayor Gardner's question regarding the need for additional environmental analysis, City Attorney Harp stated that additional environmental analysis is needed only if there are significant changes. In this case, it is not needed. Council Member Henn noted that there is a requirement that amplified music be within certain decibel levels, and asked about the City's role in mitigating the issue and compliance with the Agreement. Community Development Director Brandt stated that the Settlement Agreement does not supersede the City's noise ordinance as it relates to any type of activity on the property. She addressed the types of permit processes for amplified sound, including a special events permit, which allows bundling, and a permit issued through the Finance Department for any type of outdoor use for amplified noise. She reiterated that the City's noise ordinance and standards remain in place, and added that the additional measures will be beneficial but do not supplant the City's ordinance. Further, she reported that noise complaints are handled within the City's Code Enforcement process and that the City has -protocols for addressing these types of complaints. She added that there are additional standards within the Settlement Agreement that require the property owner to keep noise at appropriate levels. Council Member Selich noted that any type of charter operation would also need to get a Marine Activities Permit. Motion by Council Member Selich, seconded by Mayor Pro Tem Curry to a) determine that the approval of the Second Amendment to the Amended Newport Dunes Settlement Agreement is exempt from the California Environmental Quality Act (CEQA) under Section 15305 of the CEQA Guidelines - Class 5 (Minor Alterations in Land Use Limitations), and direct staff to file a notice of exemption; b) approve the Second Amendment to the Amended Newport Dunes Settlement Agreement between the City and the County of Orange, Waterfront Resort Properties L.P., and Newport Dunes Marina, LLC; and c) authorize the City Manager to execute the amendment. The motion carried by the following roll call vote Volume 60 - Page 523 City of Newport Beach City Council Minutes July 10, 2012 Ayes: Council Member Hill, Council Member Rosansky, Mayor Pro Tem Curry, Mayor Gardner, Council Member Selich, Council Member Henn Absent: Council Member Daigle 16. INSTALLATION OF BICYCLE SHARED LANE MARKINGS (SHARROW) ON COAST HIGHWAY IN CORONA DEL MAR. [100-2012) Public Works Director Badum reported that the item was requested by the Citizens Bicycle Safety Committee who is requesting that Council consider the installation of Sharrows through Corona del Mar, as well as creating an outreach and education program. He provided a description of Sharrows and noted that they have been installed on a portion of Bayside Drive. He utilized a PowerPoint presentation to address the promotion of roadway sharing for motorists and cyclists, the possibility of reducing dooring accidents, and the potential issues that could be mitigated through education. He presented an example of how Sharrows would work in Corona del Mar, addressed zone protection, and discussed the addition of signs. Mayor Gardner reported that she leads the Citizens Bicycle Safety Committee meetings but is not a voting member, and expressed concerns that Sharrows may make drivers more aggressive. She encouraged residents to access www.streetsmartsmarin.org which provides educational resources for bicycle safety. Council Member Selich reported that he frequently drives on Bayside Drive and noted that Corona del Mar has two lanes where Bayside Drive has one lane. Further, Bayside Drive is a small, cramped road and believed that it is not a fair comparison with Pacific Coast Highway (PCH) because of the type of road. In response to Council Member Hill's question, Mayor Gardner noted that the speed limit on PCH is 35 mph. Discussion followed regarding existing curvature of PCH posing added risks. Public Works Director Badum reported that there are curbed areas but there is adequate sight distance. Michael Alti, Member of the Bicycle Safety Committee, stated that there is a misconception by the public that members of the Bicycle Safety Committee are biased bicyclists, but emphasized that the Committee strived to balance the needs of cyclists and motorists in order to maximize safety. He noted that bicycles have the same rights as motorists to use the roads. He referenced applicable General Plan policies regarding bicycles and reiterated that the basic issue is to provide balance; clarify law, and maximize safety. Tony Petros, Member of the Bicycle Safety Committee, reminded Council of the Committee's mission and goals. He noted that the Committee was directed to look at specific issues, presented solutions for those issues, and reported that Los Angeles and San Diego recently installed 20 -miles of Sharrows within each of their cities. He addressed reductions in incidents and the need for education. He requested that Council approve the Committee's recommendations. Discussion followed regarding green lanes installed in the City of Long Beach and other cities. Paul Glowienke spoke on behalf of the Corona del Mar Residents Association and presented a letter from the Association encouraging Council to approve the installation of Sharrows in Corona del Mar. Robert Kahn, Member of the Bicycle Safety Committee, noted that installation of Sharrows is consistent with guidelines in the California Manual of Traffic Control Devices. He addressed the reduction of "dooring" accidents and encouraged Council to approve the item. Barry Allen encouraged Council to post signs regarding unsafe conditions for bicyclists along Volume 60 - Page 524 City of Newport Beach City Council Minutes July 10, 2012 Corona del Mar if Sharrows will be installed. He expressed concerns with the width of the street and believed that Sharrows are not appropriate for the area. He addressed high traffic areas and laws that favor bicyclists, and stated that Sharrows are not in the Code. He presented his background in defending bicycle -related cases, expressed concerns with possible litigation towards the City, related to bicycle accidents, and suggested that the City seek immunity for Sharrows through legislation. Dan Purcell took issue that Mr. Allen was allowed to go over the 5 minute time limit. Mark Goodley presented his testimony as a survivor of a recent traffic bicycle accident, believing that the accident could have been avoided had Sharrows been installed. He recommended installing additional signage and encouraged Council to approve the item. David Huntsman reported he normally rides on Bayside Drive and has never had problems with angry motorist unless there has been one car behind him who wants to pass. He believed that Bayside Drive drivers seem to drive faster than on PCH and felt that Sharrows on Bayside Drive are not a good Sharrows experiment. He referenced statements from Visit Newport Beach, Inc. (VNB) regarding the number of overseas visitors to the City and believed that these visitors expect to see a cycling -friendly main street in Newport Beach. Brenda Miller requested that Council approve the item and addressed safety for all roadway users. She believed that Sharrows are a cost-effective communication tool that promotes awareness and safety. Sean Matsler, Member of the Bicycle Safety Committee, discussed green lanes in Long Beach and in Los Angeles. He noted that bicyclists will ride on PCH with or without Sharrows, but urged Council to approve the item. Susan Goodley stated that she is not as concerned about rights as she is with safety, and that Sharrows provide a visual marker cue for motorists and provides a margin of safety in that they educate drivers to be aware of cyclists. Motion by Mayor Pro Tem Curry, seconded by Council Member Selich to a) receive and file the letter to the Newport Beach City Council in support of installation of Sharrows from the Citizens Bicycle Safety Committee; b) direct staff to proceed with design of Sharrow deployment on Coast Highway from MacArthur Boulevard to Poppy Avenue and creation of an outreach and education program, as recommended by the Citizens Bicycle Safety Committee; and c) as desired by the City Council, approve installation of Sharrows on Coast Highway from MacArthur Boulevard to Poppy Avenue per the guidelines of the California Manual of Traffic Control Devices. Mayor Pro Tem Curry commented on possible liability issues and inquired whether the installation of Sharrows creates additional liability for the City above what may exist today. City Attorney Harp noted that it provides design -immunity and that staff has done what it can do to help limit the City's liabilities. Discussion followed regarding possible traffic violations related to riding too slowly and providing education regarding the installation of Sharrows. Council Member Hill indicated that he supports the installation of Sharrows. In response to his question, City Attorney Harp addressed related immunities. The motion carried by the following roll call vote: Ayes: Council Member Hill, Mayor Pio Tem Curry, Mayor Gardner, Council Member Selich, Council Member Henn Volume 60 - Page 525 City of Newport Beach City Council Minutes July 10, 2012 Noes: Council Member Rosansky Absent: Council Member Daigle 17. REQUEST TO REPLACE EXISTING PRIVATE IMPROVEMENTS IN THE PUBLIC RIGHT-OF-WAY AT 1540 OCEAN BOULEVARD. [100-20121 Public Works Director Badum reported that the homeowner has requested permission to install pavers within the public right-of-way in the parkway in front of their home. He presented background, addressed a previous encroachment approval, and referenced Council Policy L-18 (Protection of Water Quality: Drainage - Public Rights -of -Way) to provide an opportunity for runoff to percolate into the ground instead of going into the gutter. He stated that the idea was to require at least 75% of permeable area with the exception of driveways and carriage walks, and reported that the particular property has proposed to have two tree wells that represent about 22% of the overall space. He added that they are deficient in the area they have for permeable area in their parkway. He reported they had a contractor remove the pavers with the idea of removing the trees and have already started their work without the benefit of a permit. While they have negotiated with the urban forester to replace the trees, they would like to install flagstone pavers throughout their driveway which would violate Council Policy L-18. Public Works Director Badum reported that the homeowner is requesting a waiver of the policy; however, he indicated there is no ground to grant their request. Council Member Selich inquired whether the Policy is followed on all City medians. Public Works Director Badum reported that the .Policy does not apply to medians and noted that a lot of the hardscape has been eliminated. He added that there is some hardscape needed in medians but staff attempts to minimize its use. Council Member Henn clarified that the area is just parkway and that there is no driveway across the parkway. Mayor Gardner stated that Council Policy L-18 is a good Policy, is part of green streets, and should be maintained. She reported that she will be supporting staffs recommendation to deny the waiver. Motion by Council Member Rosansky, seconded by Mayor Gardner to deny the request since it does not comply with the intent of Council Policy L-18 to minimize dry -weather runoff and runoff from small rain events, to improve water quality and to allow urban runoff to percolate into the earth before entering the City's street drainage system. 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 Noes: Council Member Hill Absent: Council Member Daigle 18, PROFESSIONAL SERVICES AGREEMENT WITH FOX LAWSON AND ASSOCIATES TO CONDUCT A CITYWIDE CLASSIFICATION AND COMPENSATION STUDY (C-5176). [381100-20121 Assistant City Manager Smith reported that the proposal is to conduct a classification and compensation study of all City positions. She reported the impetus behind this was to reset job classifications and reported that the City has never conducted such a study. She referenced Council's compensation philosophy and noted that there have been layoffs, that the City has reduced the size of the organization, and that many positions have been added through the years. She noted difficulties in internal consistencies throughout departments as the positions have been Volume 60 - Page 526 City of Newport Beach City Council Minutes July 10, 2012 added. She reported that a classification study would provide a systematic way to evaluate the needs of the modern organization and that the methodology will provide a concrete way to reset the City's classifications. Bruce Lawson, Fox Lawson and Associates, reported that the study would provide a comprehensive view of all City positions from a classification standpoint, as well as re-examine the way compensation is delivered. He addressed the project duration and the resulting outcome. In response to Council questions, Mr. Lawson noted that the study will also include a comparative analysis which would include cash compensations and benefits. He confirmed that the study will encompass all City positions, including public safety. Additionally, there will be a compensation strategy for the Department Director positions. Motion by Council Member Henn, seconded by Council Member Rosanskv to approve and execute the Professional Services Agreement with Fox Lawson and Associates, a Division of Gallagher Benefit Services, Inc. (FILA) to conduct a comprehensive citywide and compensation study, not to exceed $115,000. 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 Absent: Council Member Daigle 19. PROPOSED ORDINANCE DESIGNATING VERY HIGH FIRE HAZARD SEVERITY ZONE (VHFHSZ) IN THE CITY OF NEWPORT BEACH. [100-2012) Mayor Pro Tem Curry recused himself from deliberations and left the dais because his residence was previously designated in the VHFHSZ. Fire Chief Poster presented an update and noted the tremendous costs related to combating wildfires. He addressed the purpose of the ordinance, previous consideration by Council, maps of the various zones, and the proposal for the Newport Beach Local Responsibility Area for VHFHSZ. He noted that the revised map will be submitted to the State as the Newport Beach VHFHSZ. He noted that it will not prevent all fires but rather a conflagration. Discussion ensued regarding the components of being in the VHFHSZ, as well as fuel mitigation and identification of the areas. Robert Hawkins, attorney representing various clients within the City of Newport Beach, indicated that he submitted comments relative to the environmental determination and commended Chief Poster for his work, but expressed concern that the environmental determination is incorrect and addressed environmental impacts to the areas. He suggested performing an environmental analysis. City Attorney Harp reported that certain findings were needed in order to reduce the amount of the fire zone and noted that less regulations are being applied to certain areas and that the area has been decreased so, therefore, there will be no increased environmental impacts to those zones. Motion by Council Member Rosanskv, seconded by Council Member Henn to a) introduce Ordinance No. 2012-15, designating Very High Fire Hazard Severity Zones within the City of Newport Beach, and pass to second reading on July 24, 2012; and b) find Ordinance No. 2012-15 is not subject to the California Environmental Quality Act ("CEQA") pursuant to Public Resources Code Section 21080(6) (1) and CEQA Guidelines Section 15268(a) because the City's adoption of the ordinance is mandated by Government Code Section 51179(a), further find the adoption of the proposed VHFHSZ map via Ordinance No. 2012-15 does not cause significant public safety issues Volume 60 - Page 527 City of Newport Beach City Council Minutes July 10, 2012 based upon the substantial evidence contained in the record and the activities required of a person who owns, leases, controls, operates, or maintains a dwelling or structure in an area designated to be within a VHFHSZ are mandated by Government Code Section 51182 and not subject to the discretion of the City. The adoption of the ordinance is therefore ministerial. To the extent that provisions of Ordinance No, 2012-15 are considered discretionary decisions due to the exclusion of certain areas from the map as submitted by the Director of the California Department of Forestry and Fire Protection ("CAL FIRE"), the excluded areas will not be affected by the adopted VHFHSZ map or fuel management activities directly resulting there from, and therefore, there, will be no impact to the environment in these excluded areas. Furthermore, find Ordinance No. 2012-15 is exempt from CEQA pursuant to CEQA Guidelines section 15304(i), which applies to fuel clearance activities within one hundred feet (100') of a structure. The motion carried by the following roll call vote: Ayes: Council Member Hill, Council Member Rosansky, Mayor Gardner, Council Member Selich, Council Member Henn Absent: Council Member Daigle 20. RECOMMENDATIONS FROM THE CHARTER UPDATE COMMITTEE. [331100-20121 City Manager Kiff noted that there was a previous presentation during today's Study Session. Assistant to the City Manager Houston presented an update on the specific Charter Sections that Council requested to further discuss. Regarding Charter Sections 402-A (Compensation), 402-B (Reimbursement and Expenses); and 404 (The Mayor. Mayor Pro Tempore), Mayor Pro Tem Curry wanted to assure residents that Council compensation is not being increased but that the item clarifies the current compensation. Assistant to the City Manager Houston affirmed that there is no increase and there is no change other than for clarification purposes. He noted that the adjustments will be per Consumer Price Index (CPI) or 5%, whichever is less. Assistant to the City Manager Houston addressed Section 407 (Regular Meeting) and the number of Council meetings to be held, reporting that the change recommends two meetings per month except for the months of August and December, when there will be at least one regular meeting in each of those months. Following discussion regarding "at such time" in Section 407, it was the consensus of Council that the language was sufficient. Assistant to the City Manager Houston highlighted some of the concerns regarding Section 708 (Board of Library Trustees. Powers and Duties). Mayor Gardner recommended overriding the Charter Update Committee and staying with the existing language. Council Member Rosansky noted that Section 708 (Board of Library Trustees. Powers and Duties) received a lot of discussion and proposed making this matter a separate ballot measure if it is to go on the ballot. Mayor Pro Tem Curry expressed support for the Committee's recommendation and discussed reasons why the City Manager should have control over Department Directors, including the Library Services Director. However, he also agreed with Mayor Gardner's suggestion to leave the Charter Section unchanged and move forward with the rest of the Charter amendments. Council Member Selich believed that the Committee was correct in its recommendation, but that the community feels otherwise. He indicated support for keeping the language unchanged. Volume 60 - Page '528 City of Newport Beach City Council Minutes July 10, 2012 Council Member Henn agreed that from a management sense, the Committee got it right but he stated that the community is not ready to be swayed by this change. He indicated support for leaving the existing language unchanged Council Member Hill expressed his support for the Committee's recommendations. Assistant to the City Manager Houston discussed recommendations regarding Charter Section 709 (Parks, Beaches and Recreation Commission. Powers and Duties). City Manager Kiff agreed with a comment from a previous budget meeting regarding the importance of being able to have the Commission review the budget. He believed that there is no reason why the Commission should not review its budget, but questioned whether this should be included as part of the Charter. Assistant to the City Manager Houston addressed Section 1114 (Claims and Demands) and Acting Assistant City Attorney Torres referenced a recent case in the City of Los Angeles relative to class action claims/lawsuits and recommended adopting a prohibition on class action claims/lawsuits. Discussion followed relative to concerns that the Charter Section might curtail a citizen's right to file a claim against the City. Assistant to the City Manager Houston noted that this does not prohibit individual claims against the City, but will discourage class action claims/lawsuits. Assistant to the City Manager Houston presented language relative to a new Charter Section which would prohibit red light cameras in the City. Mayor Pro Tem Curry reported that a lot of cities have adopted prohibitions on red light cameras and addressed a possible trust issue between the City and community. He believed that it would be appropriate to add this item to the Charter amendments to give citizens protection against this kind of technology abuse. He suggested amending the proposed language to eliminate language regarding toll roads, but believed that red light cameras have no place in the City. Council Member Rosanky expressed support for Mayor Pro Tem Curry's comments but questioned whether this issue can be added to the discussions. City Attorney Harp expressed the opinion that this is within the purview of what is being discussed. He stated that an exception for toll road enforcement can be included in the proposed language. Paul Watkins, Chairman of the Charter Update Committee, noted that many of the Committee Members are in attendance and stated that this was a learning experience for him. He thanked staff and noted the process involved a lot of public input. George Schroeder expressed concerns relative to amending Charter Section 708 (Board of Library Trustees. Powers and Duties) and noted that Council could appoint new Board of Library Trustees at any time. He indicated support for leaving the Section unchanged. Elizabeth Stahr asked Council to keep the language regarding Board of Library Trustees unchanged (Section 708), believing that the current system works well. Dan Purcell stated that times have changed and believed that that Board of Library Trustees meetings could improve. He expressed support for the Committee recommendations relative to Charter Section 708 (Board of Library Trustees. Powers and Duties), but expressed concerns regarding class action lawsuits (Section 1114), Council meetings (Section 407), and red light cameras (proposed new Charter Section). Jim Mosher believed there is lack of direction as to how the Charter can/should be amended. He expressed concerns regarding Council stipends (Sections 402-A, 402-B and 404), and the deletion of Volume 60 - Page 529 City of Newport Beach City Council Minutes July 10, 2012 Sections 103 (Continuance of Present Officers and Employees) and 105 (Pending Action and Proceedings). Regarding the proposed new Charter Section 402 (Compensation), he questioned whether compensation is a reimbursement for expenses or salaries. He further commented on locations of meetings (Section 407 — Regular Meeting), Section 410 (Quorum. Proceedings), allowing ordinances to be adopted at special meetings (Section 412 — Adoption of Ordinances and Resolutions), changes in contracting (Section 421 — Contracts. Execution), and City Manager Pro Tem (Section 507). Robert Hawkins expressed opposition to the Charter amendments, stating that there was no justification or reason why the Charter should be amended two years after it was updated. He believed this has been done with little thought, and addressed the class action lawsuit issue (Section 1114) and Sections 421 (Contracts. Execution) and 1400 (Definitions) regarding approval of contracts. Regarding Charter Sections 421 (Contracts. Execution) and 1400 (Definitions), City Attorney Harp addressed delegation of authority and clarified what is already allowed in the Charter. Rhonda Brown -Watkins commented on the amount of time that was expended during Charter Update Committee meeting deliberations. She reported attending all the meetings with the exception of one and stated that she was impressed by the depth and extent of knowledge of the Committee Members, as well as the time they put into their efforts. Council Member Selich expressed opposition to including a prohibition of red light cameras in the Charter. Regarding Section 709 (Parks; Beaches and Recreation Commission. Powers and Duties), Council Member Henn stating that the he sees no reason why the Committee's recommendation should not be accepted and why presenting the budget to the Parks, Beaches and Recreation Commission needs to be mandated in the Charter. Motion by Council Member Hill, seconded by Council Member Rosansky to approve the recommended actions presented in the 2012 Charter Update Committee report for inclusion in a ballot measure for the November 6, 2012 General Municipal Election, but take separate actions relative Charter Section 708 (Library Board of Trustees. Power and Duties), Charter Section 709 (Parks, Beaches and Recreation Commission. Powers and Duties), and the proposed Charter Section relative to the prohibition of red light cameras in the City of Newport Beach. 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 Absent: Council Member Daigle Motion by Mayor Pro Tem Curry, seconded by Mayor Gardner to leave the current language in Charter Sectoin 708 (Board of Library Trustees. Powers and Duties) unchanged and not include it in a ballot measure for the November 6, 2012 General Municipal Election. 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 Absent: Council Member Daigle Motion by Council Member Henn, seconded by Council Member Selich to approve the recommended language for Charter Section 709 (Parks, Beaches and Recreation Commission. Power and Duties) as provided in the 2012 Charter Update Committee report for inclusion in a Volume 60 - Page 530 City of Newport Beach City Council Minutes July 10, 2012 ballot measure for the November 6, 2012 General Municipal Election. 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 Absent: Council Member Daigle Motion by Mayor Pro Tem Currv, seconded by Council Member Rosanskv to approve the amended proposed Charter Section language relative to the prohibition of red light cameras in the City of Newport Beach for inclusion in a ballot measure for the November 6, 2012 General Municipal Election. The motion carried by the following roll call vote: Ayes: Council Member Hill, Council Member Rosansky, Mayor Pro Tem Curry, Council Member Henn Noes: Mayor Gardner, Council Member Selich Absent: Council Member Daigle In response to City Attorney Harp's question relative to the number of ballot measure questions that should be presented to the voters, it was the consensus of the City Council to bring only one question forward to the electorate for the November 6, 2012 General Municipal Election. City Manager I{iff thanked the public and staff for their participation. XVIII. MOTION FOR RECONSIDERATION - None XIX. ADJOURNMENT - 10:53 p.m. The agenda for the Regular Meeting was posted on July 5, 2012, at 4:50 p.m on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. City Clerk ak� -1 &k� Recording Secretary Volume 60 - Page 531