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HomeMy WebLinkAbout06/11/2013 - Regular MeetingCity Council Minutes Regular Meeting June 11, 2013 — 7:00 p.m. I. STUDY SESSION - 5:00 p.m. I1. CLOSED SESSION - 5:45 p.m. A. CONFERENCE WITH REAL PROPERTY NEGOTIATORS (Government Code § 54956.8): Property: 3300 Pacific View Drive, Corona del Mar, California Agency Negotiator: Dave Kiff Negotiating Parties: Harbor Day School Under Negotiation: Instruction to Agency Negotiator will concern price and terms of payment of a lease. B. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Government Code § 54956.9(d)(1)): Arnie Pike, et al a City of Newport Beach U.S. District Court Case No. CV -08 -8580 DSF (RNBx) U.S. Court of Appeals for the 9th Circuit Case No. 12 -56074 C. CONFERENCE WITH LABOR NEGOTIATORS (Government Code § 54957.6): Heading Agency Designated Representatives: Dave Mff, City Manager and Terri Cassidy, Human Resources Director; Negotiators Employee Organizations: All Labor Associations: Association of Newport Beach Ocean Lifeguards (ANBOL); Newport Beach City Employees Association (NBCEA); Newport Beach Employees League (LABEL); Newport Beach Firefighters Association (NBFA); Newport Beach Fire Management Association (NBFMA); Lifeguard Management Association (NBLMA); Newport Beach Part Time Unit (OPEC, Local 777); Newport Beach Police Association (NBPA); Newport Beach Police Management Association (NBPMA); and Newport Beach Professional and Technical Association (NBPTEA) 111. RECESS IV. RECONVENED AT 7:00 P.M. FOR REGULAR MEETING V. ROLL CALL Present: Council Member Gardner, Council Member Petros, Mayor Pro Tom Hill, Mayor Curry, Council Member Selich, Council Member lienn, Council Member Daigle Volume 61 - Page 192 City of Newport Beach City Council Minutes June 11, 2013 VI. CLOSED SESSION REPORT - City Attorney Harp reported that there were no reportable actions taken VII. PLEDGE OF ALLEGIANCE - Council Member Henn VIII. INVOCATION - Pastor Bradley Stienstra, Newport Harbor Lutheran Church IM PRESENTATION Presentation from Jenny Conde regarding the Vest -A -Dog OC Chapter Mayor Curry introduced Jenny Conde, freshman at Corona del Mar High School, who formed a club to raise funds to purchase bulletproof vests for police dogs. Miss Conde introduced Newport Beach Police Officer Vlad Anderson, Club Advisor, and attending members of the club. She addressed the mission of the club, its purpose and goal, and expressed her appreciation to Council Member Daigle for her contribution and presented her with a t- shirt. Additionally, Miss Conde acknowledged contributions from local businesses, addressed the club's fundraising efforts, and introduced the two K -9 Officers who are using the vest and their handlers, Officer Fletcher and Officer Stucken. Police Chief Johnson expressed his appreciation to Miss Conde and the club for their accomplishments and presented them with a plaque in appreciation of their efforts. Mayor Curry and Members of Council presented a Certificate of Recognition in appreciation of their efforts. Mayor Pro Tom Hill commented on the Newport Beach Citizens' Police Academy and encouraged residents to participate. X. NOTICE TO THE PUBLIC XI. CITY COUNCIL ANNOUNCEMENTS OR MATTERS WHICH COUNCIL MEMBERS WOULD LIKE PLACED ON A FUTURE AGENDA (NON- DISCUSSION ITEM) Regarding fire rings, Mayor Curry reported that the City has been working with the AQMD who has conducted analyses on the impacts of fire rings and have found that each is the equivalent of a diesel truck driving 564 mules. He noted the number of fire rings in the City and commended the AQMD for documenting their impact. He reported that members of the AQMD Board approached the City regarding the possibility of conducting a demonstration project using alternative fuels to see if the fire rings could be preserved while minimizing health impacts. Mayor Curry reported that the details are being worked out and the matter will be presented to Council at a future meeting. Mayor Curry also reported that he attended an event with Newport Beach Water Polo players in preparation for the Junior Olympics and an Association of Cities Infrastructure Summit. He indicated that he participated in the Balboa Island Parade and in the Arrested Development Banana Stand event hosted by Netflix. He reported attending a reception of the Crystal Cove Alliance, speaking at the City of Newport Beach Leadership Academy, hosting a "Meet the Mayor" event, and attending the Athletic Scholarship Breakfast. He also thanked Ms. Gibson's 3rd Grade Class from Our Lady Queen of Angels School who wrote letters to the Mayor. Council Member Petros reported attending the Newport Harbor High School Jazz Picnic, speaking at the Stop Polluting Our Newport (SPON) annual meeting, and participating in the Ensign Intermediate School Character Awards. Council Member Gardner commented on surf conditions and noted that the information used to be in the Volume 61 - Page 193 City of Newport Beach City Council Minutes Junell,2013 Daily Pilot. She suggested providing this type of information on the City's webpage, including water temperature, surf conditions and tides. She referenced a prior presentation from the Harbor Commission regarding improving education for paddle boarders and asked about the status of the item. City Manager Kiff indicated that educational information was to be distributed along with business licenses and reported that he will follow up on the matter and report, to Council at a future meeting. Council Member Henn announced a meeting of the Balboa Village Advisory Committee (BVAC) on June 12, 2013, at 4:00 p.m. at ExplorOcean and addressed items on the agenda; and announced a meeting of the Tidelands Management Committee on June 19, 2013, at 4:00 p.m. in the Civic Center Community Room. Council Member Daigle provided an update on the City's partnership with the Irvine Ranch Conservancy on Open Space Management. She addressed improvements in Buck Gully Reserve, public programs throughout the year, volunteer opportunities, and continuing work in Buck Gully. She reported that Recreation and Senior Services Director Detweiler received an award for Excellence in Partnership from the Conservancy at a recent annual event. Council Member Daigle also reported that the Conservancy is in the process of appointing an expanded Board of Directors. She added that, at her request, the City completed an agreement with the Conservancy to conduct interim projects in the Big Canyon Reserve and addressed goals and long -term plans. She expressed her appreciation to staff for their efforts to develop realistic and viable concepts. XIL PUBLIC COMMENTS ON CONSENT CALENDAR - None XIIL CONSENT CALENDAR A. READING OF MINUTES AND ORDINANCES 2. READING OF ORDINANCES. Waive reading in full of all ordinances under consideration, and direct the City Clerk to read by title only. B. ORDINANCE FOR ADOPTION 3. ADOPTION OF ORDINANCE NO. 2013 -10 AMENDING TITLE 15 OF THE NEWPORT BEACH MUNICIPAL CODE IN RESPECT TO THE PERIODIC REVIEW OF DEVELOPMENT AGREEMENTS (PA2013 -082). 1100 -20131 Conduct second reading and adopt Ordinance No. 2013- 10, An Ordinance of the City Council of the City of Newport Beach Amending Chapter 15.45,080 of the Newport Beach Municipal Code Relating to the Periodic Review of Development Agreements (PA2013.082). C. RESOLUTIONS FOR ADOPTION 4. RESOLUTION OF INTENTION TO RENEW THE CORONA DEL MAR BUSINESS IMPROVEMENT DISTRICT AND LEVY ASSESSMENTS IN FY 2013 -2014. [100- 20131 a) Approve the Corona del Mar Business Improvement District FY 2012 -2013 Annual Report; and b) adopt Resolution No. 2013 -46, A Resolution of the City Council of the City of Newport Beach Declaring its Intention to Renew the Corona del Mar Business Improvement District and Levy Assessments for the Fiscal Year of July 1, 2013 to June 30, 2014, and Fix the Time and Place of a Public Hearing for June 25, 2013. 5. RESOLUTION OF INTENTION TO RENEW THE NEWPORT BEACH RESTAURANT ASSOCIATION BUSINESS IMPROVEMENT DISTRICT AND LEVY ASSESSMENTS IN FY 2013 -2014. [100 -20131 Adopt Resolution No. 2013 -47, A Resolution of the City Council Volume 61 - Page 194 City of Newport Beach City Council Minutes Junell, 2013 of the City of Newport Beach Declaring its Intention to Renew the Newport Beach Restaurant Association Business Improvement District and Levy Assessments for the Fiscal Year of July 1, 2013 to June 30, 2014, and Fix the Time and Place of a Public Hearing for June 25, 2013, where written and oral protests may be made. ANNUAL MEASURE M FUND ELIGIBILITY REQUIREMENTS. [100 -2013] a) Adopt the Measure M Seven -Year Capital Improvement Program (CIP); b) adopt Resolution No. 2013 -49, A Resolution of the City Council of the City of Newport Beach Concerning the Status of the Circulation Element and the Mitigation Fee Program, affirming that the City's Circulation Element is in conformance with the Regional Master Plan of Arterial Highways (MPAH), and reaffirming that Council concurs with the existing Mitigation Fee Program; and c) direct staff to submit all necessary material to OCTA to satisfy the Measure M annual eligibility requirements. 8. SUMMARY VACATION OF EXISTING SEWER EASEMENT AT 901 KINGS ROAD. 1100 -20131 a) Adopt Resolution No. 2013 -50, A Resolution of the City Council of the City of Newport Beach Ordering the Summary Vacation of an Existing 10 -Foot Wide Sewer Easement at 901 Kings Road (Lot 25, Block E of Tract 1219) and Directing the City Clerk to Record Same with the County Recorder's Office; b) direct staff to process the Summary Vacation, and c) direct the City Clerk to have Resolution No. 2013 -50 and Summary Vacation documents recorded by the Orange County Recorder, D. CONTRACTS AND AGREEMENTS 9. 2012 -2013 SIDEWALK, CURB AND GUTTER REPLACEMENT PROJECT - NOTICE OF COMPLETION AND ACCEPTANCE OF CONTRACT NO. 5204. [381100.20131 a) Accept the completed work and authorize the City Clerk to file a Notice of Completion; b) authorize the City Clerk to release the Labor and Materials Bond 65 days after the Notice of Completion has been recorded in accordance with the applicable portions of the Civil Code; and c) release the Faithful Performance Bond one year after Council acceptance. 10. 2012 -2013 STREETLIGHT IMPROVEMENT PROJECT - NOTICE OF COMPLETION AND ACCEPTANCE OF CONTRACT NO. 5193. [381100 -2013] a) Accept the completed work and authorize the City Clerk to file a Notice of Completion; b) authorize the City Clerk to release the Labor and Materials Bond 65 days after the Notice of Completion has been recorded in accordance with the applicable portions of the Civil Code; and c) release the Faithful Performance Bond one year after Council acceptance. 11. ORANGE COUNTY SANITATION DISTRICT (OCSD) DOVER DRIVE TRUNK SEWER RELIEF PROJECT; REIMBURSEMENT AGREEMENT FOR STREET RESTORATION (C- 5493). [381100 -20131 Approve the Reimbursement Agreement with OCSD in the amount of $633,000.00 for street restoration efforts required as a part of the Dover Drive Trunk Sewer Relief' Project, and authorize the City Manager and City Clerk to execute the agreement. Mayor Curry and Mayor Pro Tem Hill recused themselves from this item because they are Directors and Alternate Directors, respectively, on the Orange County Sanitation District (OCSD). Without objection, City Attorney Harp recommended having the City Manager execute the agreement rather than the Mayor. Volume 61- Page 195 City of Newport Beach City Council Minutes June 11, 2013 12. APPROVAL OF AN AGREEMENT FOR THE PURCHASE OF TRACTOR -DRAWN QUINT (C- 5494). [381100 -20131 Approve an Agreement with Pierce Manufacturing, Incorporated of Appleton, Wisconsin, for the purchase of one 2013 Pierce Tractor -Drawn Quint Fire Apparatus for a total cost of $1,148,221.44, including sales tax. E. MISCELLANEOUS 13. PLANNING COMMISSION AGENDA FOR JUNE 6, 2013. [100 -20131 Receive and file. _Motion by Mayor Pro Tem Hill, seconded by Council Member Selich to approve the Consent Calendar, except for the items removed (Items 1, 6 and 14), noting the recusals by Mayor Curry and Mayor Pro Tem Hill. on Item 11, and authorizing the City Manager to execute the agreement relative to Item 11. The motion carried by the following roll call vote: Ayes: Council Member Gardner, Council Member Petros, Mayor Pro Tem Hill, Mayor Curry, Council Member Selich, Council Member Henn, Council Member Daigle XIV. ITEMS REMOVED FROM THE CONSENT CALENDAR 1. MINUTES FOR THE MAY 28, 2013 STUDY SESSION AND REGULAR MEETING. [100- 20131 Council Member Daigle noted that some of her statements were omitted from the minutes and that the City Clerk has provided an amended set of minutes. Motion by Council Member Daigle, seconded by Council Member Selich to waive reading of subject minutes, approve as amended, and order filed. The motion carried by the following roll call vote: Ayes: Council Member Gardner, Council Member Petros, Mayor Curry, Council Member Selich, Council Member Venn, Council Member Daigle Abstain: Mayor Pro Tem Hill 6. SUPPORT FOR INCREASED FUNDING FOR LOCAL COASTAL PLANNING. [100 -20131 Council Member Petros discussed the City's reduction in staff levels and maintenance of budgetary levels, while doing more for its citizens. He believed that the Coastal Commission has been one of the City's adversaries for moving forward in its pursuits on behalf of its citizens and expressed opposition to approving the proposed resolution. He urged Council to oppose the recommendation. Council. Member Gardner reported that the Coastal Commission has been underfunded and understaffed for a long time. She expressed concerns that the money will not accomplish its intent and believed that the Coastal Commission has not been a well - managed agency. She expressed the opinion that the money would be better spent by hiring a consultant to analyze the agency for ways to gain efficiencies. She added that, if the culture does not change, hiring new people will not serve a purpose. She discussed the possibility of adding language to encourage real change rather than just adding funding. Council Member Daigle indicated that she was persuaded by Council Member Petros' comments. Mayor Curry agreed and added that the Coastal Commission needs a significant review of their Volume 61 - Page 196 City of Newport Beach City Council Minutes June 11, 2013 operations Motion by Council Member Petros, seconded by Council Member Daigle to deny the request for the City to support additional State funding for the Local Coastal Program planning process established by the California Coastal Act. Council Member Gardner asked if the action would make the Coastal Commission more inclined to not support the City. City Manager Kiff suggested denying funding for additional staff, but supporting funding for the Local Coastal Program. Council Member Petros indicated that be cannot support the matter, on principle, and noted that the Coastal Commission will probably receive funding, but that the City's Local Coastal Program will not move any faster as a result. George Schroeder emphasized the City's need to negotiate many projects with the Coastal Commission in the future. Denys Oberman, agreed with Council Member Gardner's comments and encouraged enacting City Manager Kiffs recommendation. She noted the need to work with the Coastal Commission and the importance of potential revitalization- related projects within the Coastal Zone. She recommended developing a solution that is not as adversarial as what Council Member Petros has recommended. Brief discussion followed regarding the amount of money involved in developing a Local Coastal Program. The motion carried by the following roll call vote: Ayes: Council Member Petros, Mayor Pro Tem Hill, Mayor Curry, Council Member Selich, Council Member Daigle Noes: Council Member Gardner, Council Member Henn 14. BOARD AND COMMISSION SCHEDULED VACANCIES - CONFIRMATION OF NOMINEES. [100 -20131 Council Member Gardner reported that she, Mayor Pro Tem Hill, and Council Member Selich interviewed candidates for Boards and Commissions, and emphasized the quality of candidates that applied. She suggested changes to Council Policy A -2 (Board, Commission and Committee Appointments) relative to requiring two or more applications for each vacant seat, allowing the Ad- Hoc Committee to make strong nominee recommendations, and possibly provide candidates the opportunity to provide a short presentation. Motion by Council Member Gardner, seconded by Mayor Pro Tem Hill to a) waive the portions of Council Policy A -2 (Board, Commission, and Committee Appointments) for the Building and Fire Board of Appeals Nominations relative to requiring two or more applications for each vacant seat and not allowing a person to serve for more than two consecutive four -year terms; and b) confirm the nominations made by the Ad Hoe Appointments Committee, as listed in the staff report. The motion carried by the following roll call vote: Ayes: Council Member Gardner, Council Member Petros, Mayor Pro Tem Hill, Mayor Curry, Council Member Selich, Council Member Henn, Council Member Daigle XV. PUBLIC COMMENTS ON NON - AGENDA ITEMS Jerry Russell discussed financial responsibility and commented on the Fox Lawson & Associates study commissioned by the City of employee wages and a budget item that sets aside monies for art. He expressed concerns relative to City employee pensions and unnecessary spending, and believed that City Volume 61 - Page 197 City of Newport Beach City Council Minutes Junell, 2013 workers are well paid Mayor Curry noted that the results of the study indicated that, relative to other cities, Newport Beach City employees are paid less. He also clarified that Council decided to set aside 2% of development fees into a fund that can be used to build facilities and provide permanent art on behalf of the City. Laura Curran believed that the piece of art located outside of the Council Chambers should be relocated for increased visibility. John Packer expressed concerns regarding increases in public employee compensation when compared with the private sector. He referenced prior Council actions regarding total compensation and noted that the compensation study made no comparisons to private sector compensation. He believed that studies do not normally conclude that employees are overpaid and added that the study is invalid and biased. He suggested looking at turnover and, when an employee leaves, post the job significantly below what the previous employee was paid. XVI. ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES Council Member Petros announced that the first Bicycle Master Plan Oversight Committee meeting will be held on June 17, 2013, in the Civic Center Community Room at 4:30 p.m. Council Member Selich reported on a recent meeting of the General Plan/Local Coastal Plan Implementation Committee and stated that the next meeting will be on June 26, 2013, at 3:30 p.m. Additionally, he reported that the Building Committee met earlier today and discussed issues related to the Civic Center site, including landscaping along MacArthur Boulevard and lighting issues related to the appearance of the sail and lights at night. XVIL PUBLIC HEARINGS 15. MOBILITIE TELECOMMUNICATIONS PERMIT FOR OBELISK LOCATED AT 20661 NEWPORT COAST DRIVE (PA2013 -003). [100 -20131 Council Member Daigle recused herself since she has an economic conflict with tha applicant. She proceeded to leave the dais. Community Development Director .Brandt introduced the item. Associate Planner Nueno utilized PowerPoint presentation to provide an overview of the proposal, address accommodations for the twe carriers, and discuss the project site, lease area, surrounding properties, existing conditions, the proposed structure, and equipment area and screening. She displayed photo simulations, wirelesF coverage before and after the installation of the proposed facility, and alternative sites, anc discussed the recommendations. Council Member Gardner questioned the alternative sites relative to compliance with the company'e mission statement and inquired about the height of the structure compared to the proposes antennas. She believed that the proposed structure is obtrusive and does not serve the residents. In response to Council questions, Associate Planner Nueno reported that the County owns the property and will need to sign off on the telecommunication application; however, because it is telecommunications project within the City's jurisdiction, the City is required to review the application. Mayor Curry opened the public hearing. Margaret Chang, representing Mobilitie, reported that there is an existing T- Mobile facility on the Volume 61 - Page 198 City of Newport Beach City Council Minutes Junell, 2013 second alternate site that was previously permitted when it was under the jurisdiction of the County and has since been annexed to the City. She noted that the site is zoned open space and there is a limit to the number of telecommunications facilities in that zone and pointed out that the other alternate facility is controlled by Caltrans who will not allow 24 -hour access. In response to Mayor Pro Tern Hill's question, Ms. Chang reported that Verizon is already located at the gas recovery site and addressed challenges with the height. She also addressed the application process and a provision in the City's Municipal Code that notes a preference to have the cell tower be an architectural element instead of a faux tree. She addressed obelisks in nearby cities and believed it was the best design they could develop without having any existing structures in the area. Gary Jabara, Founder and CEO of Mobilitie, presented information on his company and addressed their right to erect cell towers and facilities on public rights -of -way. He stated that the issue is not about vanity, but about utility and necessity, and commented on incidents that might have been avoided if there were cell coverage. He addressed efforts by the company to improve public safety and reported that the facility will provide cell service to a much needed section of the City. Dan Wampole, President of the Newport Ridge Homeowners Association and Vice President of the Tesoro Homeowners Association, spoke in opposition to the proposed project, but agreed that there is a need for increased cell coverage. He believed that there are other possible locations and commented on potential areas that could provide coverage without having a negative impact on open space. Jim Walker spoke in support of the project due to the need for cell coverage in the area. He noted that the area is a landfill and believed that the structure will go unnoticed. Denys Oberman believed that the proposed structure is obtrusive and that there are other alternatives that would serve the same objectives. She expressed concern with loss of open space and asked that the Council demand an alternative design. George Schroeder believed that the matter is a public safety issue and stressed the need for adequate cell coverage in that area. He encouraged Council to take action on the matter to ensure appropriate coverage for the area. Cynthia Jolly, representing Mobilitie, stressed that the project has been four -years in the making and noted that it is consistent with the General Plan and the Zoning Code. She commented on the future use of the landfill as a golf course and addressed alternative designs. She urged Council to approve the item and reported that Caltrans denied their application based on their need for 24- hour access to the area near the toll road location. In response to Council Member Henn's questions about public outreach, Ms. Chang reported that Mobilitie followed the proper zoning process and addressed public noticing. Council Member Henn expressed concern with the company's lack of effort to work with the surrounding homeowners. There being no further testimony, Mayor Curry closed the public hearing. Council Member Henn acknowledged the need for cell coverage in that area, but expressed the need for independent analysis of the applicant's statements. Associate Planner Nueno addressed the independent review process for similar projects, but indicated that it was not conducted on this application. She added that staff was in communication with Caltrans and they confirmed that the application was denied. She reported that Sage Hill School was also evaluated, but it was determined that it would not meet the required coverage area. Volume 61 - Page 199 City of Newport Beach City Council Minutes June 11, 2013 Mayor Pro Tern Hill stated that he would like to know what other creative designs might be available and asked about the criteria for evaluating locations. Council Member Gardner asked if there were any raised areas that could be used in order to allow for a shorter tower. Mayor Curry agreed that cell service is needed in that area, but expressed the opinion that there should be more involvement with the homeowners associations and neighbors in order to find the right location and develop better aesthetics. He suggested continuing the matter until Council's first meeting in July to give Mobilitie and the neighbors the opportunity to work with each other to possibly develop a different alternative. Community Development Director Brandt recommended continuing the matter to the second meeting in July. Motion by Mayor Curry, seconded by Council Member Henn to continue the item to the July 23, 2013 City Council meeting in order for Mobilitie and the homeowner associations to discuss the issues. Council Member Petros indicated that he will support the motion, adding that it would be with the expectation that the project returns to Council with a different plan for the site that would achieve the aesthetic objectives. Community Development Director Brandt recommended obtaining the applicant's concurrence to the continuance. Mr. Jabara asked about the possible implications of continuing the matter and reiterated that Mobilitie can begin action to take possession through condemnation of any public right- of-way. He explained that the company has worked on this project for four years and discussed the need for the suggested height of the structure. He addressed methods to stealth the facility and reported that all of the adjacent residents have been notified. He agreed to work with the City and homeowners to develop a mutually - agreeable alternative, The motion carried by the following roll call vote: Ayes: Council Member Gardner, Council Member Petros, Mayor Pro Tem Hill, Mayor Curry, Council Member Selich, Council Member Henn 16, ADOPTION OF FISCAL YEAR 2013 -14 APPROPRIATIONS LIMIT. [100 -20131 City Manager Kiff introduced the item, noted that this is a routine matter, and requested that Council adopt the Fiscal Year 2013 -14 Appropriations Limit. Motion by Council Member Gardner, seconded by Council Member Petros to adopt Resolution No. 2013 -52, A Resolution of the City Council of the City of Newport Beach Determining and Establishing an Appropriations {Gann} Limit for Kscal Year 2013 -14 in accordance with Article XIIIB of the California Constitution and Government Code Section 7910, in the amount of $159,433,819. The motion carried by the following roll call vote: Ayes: Council Member Gardner, Council Member Petros, Mayor Pro Tern Hill, Mayor Curry, Council Member Selich, Council Member Henn, Council Member Daigle 17. RESOLUTION NO. 2013 -53: FISCAL YEAR 2013 -14 BUDGET ADOPTION. [100 -20131 Volume 61 - Page 200 City of Newport Beach City Council Minutes Junell, 2013 City Manager Kiff introduced the item, addressed prior meetings regarding the budget, highlighted the budget checklist, and deferred to staff for a report. Finance Director Matusiewicz utilized a PowerPoint presentation to provide an overview of the proposed budget. He addressed the budget review process, prior meetings, consistency with the General Plan, and recommendations. He also presented details of the budget checklist, including revisions to the General Fund Operating Budget. Without objection Mayor Curry clarified that Checklist items 3, 7, 11 and 12 have been pulled for separate consideration. Finance Director Matusiewicz presented the proposed Nara- General Fund checklist and the proposed revisions to the CIP checklist. He addressed proposed, revenue adjustments and City Manager Kiff stated that the first item on this checklist relates to a Southern California Edison (SCE) contribution for a pilot project and addressed the appropriation. City Manager Kiff addressed Management Compensation Adjustments and stated that the Fox - Lawson & Associates (FLA) report is a study that is part of a larger study in order to set every employee's classification and compensation. He stressed that the report did not recommend raises for anyone. He emphasized that this is a requirement of PERS and clarified that the budget item for $35,000 is for one -time bonuses, is not PERSable, and will be spread amongst executive staff. He highlighted previous versus current City Manager compensation, including pension contributions, and noted that he is earning approximately $27,000 less than the previous City Manager. He addressed the rationale for setting compensation ranges, as well as the process and benefits of doing so. City Manager Kiff pointed out that City= employees tend to pay more in pension costs than other agencies, and emphasized that setting ranges does not raise wages and that no raises are being recommended. Council Member Daigle acknowledged her Council colleagues for opposing PERSable merit pay increases and noted that Council has worked effectively to reform pensions over the years_ She addressed flaws with the FLA study related to the Librarian position and not considering total compensation, and believed that the City should hire consultants that have a credible methodology and that Council should be provided with information regarding median salaries. Council Member Henn reported, on his experience in the private sector as a Chief Financial Officer and Chief Administrative Officer for Fortune 500 companies. lie indicated that FLA is a reputable consultant and that the overall approach and structure of what they have recommended is within the norm of good practice for such activities, whether it relates to private industry or public governance. He addressed the need for salary ranges and the compensation philosophy, and noted that it does not mean that everyone should be paid at the 50th percentile. He emphasized that compensation must go hand -in -hand with performance evaluations and commented on the flaws of a recent Orange County Register editorial on this topic and added that the City will manage compensation and performance on the basis of objective facts and support. Following discussion, Council Members indicated support of Management Compensation Adjustments (Item 3) on the Budget Checklist. Regarding Checklist Item 7 (Newport Bay Conservancy), Council Member Gardner acknowledged the Conservancy's work, but expressed concerns with the City getting involved in capacity building. Council Member Daigle reported that there has been some instability in their organization, addressed the new Board, and indicated that the people on the Board are very committed. She reported that the purpose of the fund would be for a part -time Executive Director who will provide direction and stability to the Conservancy. Mayor Curry indicated that he shares Council Member Volume 61 - Page 201 City of Newport Beach City Council Minutes Junell, 2013 Gardner's concern and believed that the Conservancy should settle their operational issues and then return to Council for programmatic recommendations in the future. It was the consensus of the City Council to have the Conservancy return with a funding request in the future. Without objection, Council Member Petros suggested setting conditions prior to funding the matter and having them return with a supplemental request. Regarding Checklist Mein 1.1 (Transition to Cultural Arts Contract), City Manager Kiff reported the item relates to the recent retirement of the City Arts Coordinator and the transitioning of the position to an independent contractor rather than having a City staff position. There was no Council objection. Mayor Curry noted that Item 12 is being funded by a contribution of $50,000 from SCE. There was no Council objection. Regarding the Arts and Culture Master Plan (CIP Checklist Item 4), City Manager Kiff reported on projects that the item could be used for and indicated that the amount of the allocation is a high estimate and that Council would review the contract before the actual expenditure. Regarding Street Light Rehabilitation (CIP Checklist Item 3), Public Works Director Webb reported that the item relates to the replacement of the last two remaining circuits. He addressed energy efficiency and noted savings to the City. Council Member Gardner noted the need for this, especially in order to meet the goal of becoming an energy- efficient City. Mayor Curry added that this is an investment in efficiency and an equity investment for the west side of the City. Council Member Henn requested and received a funding status of the proposed Challenge Loan assignment of a portion of the existing FFP Re completion of Council consideration of the loan. Mayor Curry opened the public hearing. summary from City Manager Mff relative to the for the Balboa Theater, to the effect that an serve would be made as a placeholder pending Jim Mosher commented on the creation of an Arts Commission and the expectation that the Commission would make recommendations to Council on anything related to arts and culture, including contracting out the position of an Arts Coordinator. Laura Curran recommended that staff provide a calendar regarding hearings related to the review and consideration of the budget,. She stated that she is looking forward to upcoming discussions as projects move forward. There being no further testimony, Mayor Curry closed the public hearing. Motion by Council Member Henn, seconded by Mayor Pro Tem Hill to adopt Resolution No. 2013 -53, A Resolution of the City Council of the City of Newport Beach Adopting the Budget for the 2013 -14 Fiscal Year. The motion carried by the following roll call vote: Ayes: Council Member Gardner, Council Member Petros, Mayor Pro Tern Hill, Mayor Curry, Council Member Selich, Council Member Henn, Council Member Daigle Mayor Curry expressed his appreciation to staff for their efforts in putting together the budget and for their leadership. Volume 61 - Page 202 City of Newport Beach City Council Minutes June 11, 2013 Council Member Petros expressed his appreciation to staff for helping him throughout the process XVIII. CURRENT BUSINESS 18. CIVIC CENTER AND PARR PROJECT CLOSE OUT ACCOUNTING (C4527). [38f100- 20131 Assistant City Manager Badum utilized a PowerPoint presentation to address the proposed recommendations, and highlight the contingency budget, general conditions, and construction support. He reported that the changes are outside of the contract scope due to Building Code issues, City requirements, unforeseen conditions, design enhancements, and gaps in the plans. He also addressed design omissions, noting the complexity of the design and allowances put in place to account for them. In response to Council questions, Assistant City Manager Badum reported that the contract entered into with C.W. Driver is a Contractor- Manager at Risk contract, a set of plans and specifications were listed under that contract as deliverables, unforeseen conditions were not included in the contract, and the City also made additions that were not included in the original contract. He added that the City set up a contract contingency to cover those change orders and staff continues to negotiate the change orders. He addressed increasing general conditions on a time - and - materials basis since the added requirements caused the contract to extend longer than anticipated, as well as added construction support, He presented a breakdown of'changes, including respective costs, and noted that the City saved money by taking advantage of reduced financing and construction costs. Assistant City Manager Badum reported that value engineering items were recorded during the design process. Mayor Pro Tern hill commented on value received from the change orders and C.W. Driver's cooperation in dealing and negotiating with subcontractors. He commented positively on the 6% change order rate, noting that most other projects are given a 10% contingency. Assistant City Manager Badum concluded by presenting details about general construction conditions and addressed tasks completed, construction support, and project costs to date. He believed that the project has been a good investment overall. Debra Allen commented on the overall costs and noted items not addressed by the architect. She thanked Council Member Selich and the Building Committee for solving some of the omissions, including consideration of the neighbors' concerns regarding landscaping and lighting. She presented pictures of the Civic Center from her home and addressed the requirements for the installation of landscaping to assist in screening the project site. She expressed support for screening the parking structure and addressed the lighting, which was also included in the EIR. Denys Oberman noted that it is the design professional's responsibility to be aware of Building Code requirements and deliver plans that assure Code compliance, and it is the construction manager's responsibility to review plans and determine what needs to be done for a plan to be considered adequate. She acknowledged the existence of unforeseen conditions and urged Council to hold the design firm and construction manager accountable for what they may or may not have done. She believed that design enhancements should receive additional scrutiny, encouraged Council to send the item back to staff and reject the matter, and believed that the amounts requested are excessive. Barry Allen suggested that staff continue negotiations and return with an adjusted amount since there are still projects that need to be done in order to comply with the contract and the EIR. He expressed concern with the amount of additional funds being requested. Jim Mosher expressed concern that many of the design decisions were instigated or approved by the Volume 61 - Page 203 City of Newport Beach City Council Minutes Junell, 2013 Ad -Hoc Building Committee without public participation. Laura Curran took issue with the staff report, believing that the title of the staff report misrepresents the action required and does not provide complete information. She also believed that most of the risk appears to have been borne by the City. She addressed the lack of details relative to contingencies and contract extensions, and believed that Council and the public should be provided with more detailed information in the future. Council Member Petros took issue that some members of the public believed that the former City Hall was an adequate facility, noting that the structure was unsafe and unsanitary and did not have the sense of community. He addressed contingencies on public improvement projects and acknowledged the amount of money being discussed; however, in terms of the percentage of change orders, he emphasized that 6% is an acceptable percentage within the industry for a construction project of this magnitude. Ile expressed concern that much of the work has already been completed and that Council is reviewing costs at this time. He expressed hope that moving forward, Council will be provided with information to assist, early on, should these types of occasions arise. Council Member Selich addressed design omissions and commented positively on the ability to take advantage of a favorable construction environment. He noted that the project came within industry standards and believed that the initial contingency was set too low. He agreed that the City received good value overall for its money and pointed out how- much thought and effort went into the project. Council Member Gardner believed that, in the future as committees are formed, Council should be provided with specific direction relative to the types of items that require Council review and input. She urged staff to continue to negotiate the final costs. Council Member Henn reported that there is a component within design omissions that, are excess costs and noted that, in his view, the architect has some culpability. Motion by Council Member Selich, seconded by Mayor Pro Tom Hill to a) approve the increase of project contingency from $1,623,000 to $6,500,000, and authorize the City Manager and Project Manager to negotiate additional project changes in the amount not to exceed $4,877,000; b) authorize the Mayor to execute an amendment to the Professional Services Agreement with Bohlin Cywinski Jackson, increasing the original contract by $579,670 to a revised cost not to exceed $4,994,357; and c) approve Budget Amendment No. 13BA -046 appropriating $6,856,670 from the unappropriated Civic Center fund balance to Civic Center construction and design accounts as follows: $6,277,000 to account number 7410- C1002030 and $579,670 to account number 7410- 01002009. The motion carried by the following roll call vote: Ayes: Council Member Gardner, Council Member Petros, Mayor Pro Tern Hill, Mayor Curry, Council Member Selich, Council Member Henn, Council Member Daigle 19. SECOND AMENDMENT AND RESTATED EMPLOYMENT AGREEMENT rOR CITY MANAGER (C- 4358). (381100 -20131 Motion by Council Member Daigle, seconded by Council Member Henn to approve and authorize the Mayor and City Clerk to execute the Second Amended and Restated Employment Agreement for the City Manager. Jim Mosher expressed concern regarding the lack of public participation, and took issue with the formation of a working group and their ability to address it. He briefly addressed the matter of Volume 61- Page 204 City of Newport Beach City Council Minutes Junell, 2013 compensation. The motion carried by the following roll call vote: Ayes: Council Member Gardner, Council Member Petros, Mayor Pro Tem Hill, Mayor Curry, Council Member Selich, Council Member Henn, Council Member Daigle XIX. MOTIONS FOR RECONSIDERATION - None XX. ADJOURNMENT -Adjourned at 10:15 p.m. in memory of Ellen Ingram The agenda for the Regular Meeting was posted on June 6, 2013, at 4:00 p.m. on the City's wehsite; on June 7, 2013, at 8:00 a.m. on the City Ball Electronic Bulletin Board located in the entrance of the City Council Chambers at 100 Civic Center Drive; and on June 7, 201.3, at 8:15 a.m, in the Meeting Agenda Binder located in the entrance of the City Council Chambers at 100 Civic Center Drive r Recording Secret ry Mayor — ociayz bm��_ City Clerk Volume 61 - Page 205