The URL can be used to link to this page

Home My WebLink About01 - Minutes"'MIN 1 6 L City Council Minutes Study Session September 10, 2013 — 4:30 p.m. I. ROLL .CALL - 4:30 p.m. Agenda Item No. 1 September 24, 2013 Present: Council Member Gardner, Council Member Petros, Mayor Pro Tom Hill, Mayor Curry, Council Member Selich, Council Member Henn, Council Member Daigle II. CURRENT BUSINESS 1. CLARIFICATION OF ITEMS ON THE CONSENT CALENDAR - None 2. FORMATION OF RULE 20A UTILITY UNDERGROUNDING DISTRICT - BALBOA BOULEVARD Mayor Pro Tem Hill recused himself since he owns property adjacent to theproposed utility undergrounding district. Public Works Director Webb provided a brief history, reported that Rule 20A funds are provided by the Public Utilities Commission (PUC) through Southern California Edison (SCE), and addressed, utilization of funds and goals related to the formation of the District Additionally, he addressed residential and business service connections, boundary options and challenges, and provided examples of the various areas in the District. Public: Director Webb presented details of the design basis and a cost analysis related to the project. He reported on the costs related to paying all or a majority of the District using Rule 20A funds, and discussed the option of having property owners pay for their a portion of the District'. He stated that the area along Balboa Boulevard being considered for undergrounding is the same area where a streetscape improvement project is pending. He addressed recommendations to approve formation of the District, based on Boundary Option 1 and noted next steps. Discussion ensued regarding the annual SCE payments, future public hearings, and the recommended timeline. In response to Council Member Henn's questions, Public Works Director Webb reported that the City would pick up the cost of repaving, but not the utility trench. He added that sewer and lateral work would be done at the same time. He noted that, if alleys are in poor shape, other funds could be used to supplement the work. Council Member Henn encouraged staff to review the matter further. Public Works Directoi Webb addressed other undergrounding projects within the City where homeowners were required to cover the costs of lateral connections. He added that, in connection with Rule 20B, homeowners are required to pay for the main line and their home service connections. Council Member Henn believed that Option I would be preferable with the caveat to expand as much as possible using Rule 20A money. O�olmRer6lX Page 261 City of Newport Beach' City'Council Study Session September 10, 2013 Council Member Petros referenced the area covered by Option 2 and questioned why the alley east of 32nd Street was not included. Public Works Director Webb explained that most residents along Seashore Drive have already undergrounded and that this is an area where homeowners have not implemented a Rule 20B project. He believed there would be an equity issue in doing the area using Rule 20A funds. Discussion followed regarding opportunities for other grant funding, narrow alleys in the area, and encouraging residents to take on Rule 20B projects. Public Works Director Webb provided a brief update on the landscape improvements scheduled for Balboa Boulevard and reported that, even though staff is waiting for a permit from Caltrans, they are ready to move forward with the project. In response to Council Member Selich's question; City Attorney Harp reported that there is a provision in the Newport Beach Municipal Code that, once a utility district is established, homeowners are required to pay for connections. However, if they do not; it would be a judicial issue where the City would make the installation and a lien would be set against the specific property. Council Member Gardner commented on the difference between options and wondered regarding the timing and the possibility of having the homeowners of the area take out a Rule 20B in order to expand the District and take advantage of economies. Public Works Director Webb indicated that it is possible to do this, but the matter is complex and will add to the timeline since homeowners would need to vote on the issue. He suggested moving forward with establishing a Rule 20A District, but continue to encourage homeowners to begin forming Rule 20B Districts on their own since there is no size limit. It was the consensus of the City Council to proceed with Option 1, have homeowners pay for their portion, and bring the item to Council for formal action. In response to Council Member Petros' question, Public Works Director Webb reported that the matter will be properly noticed, including potential costs. George Schroeder thanked staff for bringing the matter forward and agreed with moving forward with Option 1. He added that this is the only section on Balboa Boulevard that still has utility poles. He believed that residents have paid connection fees but businesses on Newport Boulevard did not have to pay their share. Jim Mosher wondered how wiring is transitioned in areas where homeowners choose not to participate and how far off, in the future, approval of the next Utility District might occur. 3. AT &T U -VERSE PRESENTATION Council Member Daigle reported that she does not receive income from AT &T, but does receive income from Verizon Wireless and, therefore, recused herself. Mayor Curry reported that he is a stockholder in AT &T and, therefore, recused himself. Deputy Public Works Director Thomas discussed the possible installation of 80 to 100 utility cabinet boxes above ground to support the ,proposed system and introduced AT &T QR 'AF me 61 -' Page 262 City of Newport Beach City Council Study Session September 10, 2013 Director of External Affairs, John Heffernan. Mr. Heffernan reported that AT &T has upgraded its fiber network and addressed what the upgrade in infrastructure, would provide residents. He discussed features, additional controls and personalization, and integration of digital devices. He presented details of the U -Verse Voice product and stated that there would be total integration of televisions; internet, and voice applications. He reported on areas already using the service and features included in the system, as well as the difference between the AT &T system and cable service. He addressed installation and taking advantage of existing cabinet facilities for minimal trenching. He added that the company is open to discussing screening options, if needed. In response to Council Member Petros' inquiry, Mr. Heffernan reported that Newport Beach is part of AT &T's wire line footprint, their network is connected to every residence in the City for dial tone, and that upon ordering the service, a connection would be made to the street -side cabinet. He added that implementation would depend on space or technological limitations where an existing cabinet may not make the list of upgradable options. Mr. Heffernan addressed communicating with neighborhoods and noted that 5 % of gross revenues of video franchise fees would go to the City and that 1% would go to support the City's Public, Educational, and Governmental (PEG) channel. Deputy Public Works Director Thomas reported that the Newport Beach Municipal Code limits the use of above - ground facilities in as many cases as possible unless it is deemed that they are the only feasible option, and addressed the proposed cabinets and potential locations for them. He added that the intent is to locate them in proximity to existing Service Area Interfaces (SAI) cabinets. Discussion ensued regarding options for screening the cabinets and it was noted that screening would be assessed on a case -by -case basis. In response to Council Member Selich's question regarding • sc're'ening, AT &T representatives reported that the cabinets would be green, if located in a landscaped area, and addressed the need to maintain access in order to service the equipment, so screening would only occur on one side. Further, screening would depend on the location of the cabinet. Discussion followed regarding the size of the cabinets compared to traffic signal cabinets,, specifications of the proposed cabinets, available colors, existing service area interfaces, and coverage area. Mr. Hefferman reported that there is an undergrounding option, but it would involve a controlled environmental vault that would necessitate an above - ground computer for maintenance and access. He stated that the vault would typically be 16' x 80', they are 80% underground, and that the above - ground equipment would be larger than the proposed above - ground cabinets. He noted that, where there are existing vaults, AT &T places underground equipment in them. In response to Mayor Pro Tem Hill's questions, Mr. Heffernan reported that installation of the system would not interfere with existing services until the service is requested. He added that the various options available are all separate products. He reported that there is no degradation of service by transferring from copper to fiber; however, users would find increased internet speed and service. Additionally,-it was noted that AT &T provides this service to areas of Costa Mesa and that, -if ftth s v ci c cannot be provided within a certain / e 2r63 DOolui I "Page 263 City of Newport Beach City Council Study Session September 10, 2013 distance, there would not be a high- quahty service since quality of service is based on the distance of the nodes to homes. In response to Council Member Gardner's question, Deputy Public Works Director Thomas reported that the ordinance allows for above- ground service if it is deemed that undergrounding is not feasible. Deputy Public Works Director Thomas requested that Council determine whether the cabinets should be screened and what the screening requirements should be. He also requested that Council consider how the installation will be deployed. Mayor Pro Tem Hill questioned how this would interface with the asphalt moratorium. Deputy Public Works Director Thomas reported that, in many cases, the facilities could be installed without the need to install additional conduits; however, the moratorium would still be honored in streets that have been paved. ` a Council Member Henn noted that undergroundink is not feasible and stated that he would prefer requiring a maximum amount of screening wherever it is deemed appropriate. Deputy Public Works Director Thomas stated that screening would be required in addition to locating the cabinets in the least visually impactful location. Mayor Pro Tem Hill indicated that the cabinets should be sleek and clean in design. Council Member Petros agreed with Council Member Henn's comments, noting that screening does not necessarily have to be landscaping and that the matter should be left at the sole discretion of the City. In response to his question, it was noted that the cabinets have cooling fans, but complies with the City's noise ordinance. Council Member Gardner indicated that the issue of noise needs to be evaluated. Mayor Pro Tem Hill inquired about other vendors and believed that they should be treated on an equal basis. City Attorney Harp noted that universal service is not 'required by law. City Manager Kiff noted other areas in the City that have no cable. Council Member Selich commented on the need for screening and developing an architectural solution in addition to landscape. In terms of service, he believed that it should be implemented as broadly as possible to provide maximum choices for the residents. Council Member Gardner asked about the location selection and notification processes. Public Works Director Thomas reported that new cabinets need to be within 150' of existing SAls and listed other considerations in choosing the location for the cabinets. He also added that permits will be issued on an individual basis so that staff will have the opportunity to make appropriate determinations for each site. In terms of future actions, City Attorney Harp reported that Council may consider amending the Municipal Code regarding undergrounding and screening. George Schroeder stated that residents want another option for internet access and commented positively on the matter. Mr. Heffernan addressed cable speeds versus the proposed system. Deputy Public Works Director Thomas reported that AT &T would pay permit fees and all associated costs with no costs being borne by the City and noted that he C y would obtain revenue through the m 'e 61 Page S�I8r4 City of Newport Beach City Council Study Session September 10, 2013 franchise fees. Discussion ensued regarding availability of references, data related to service satisfaction; and the benefits of providing the service. Mr. Heffernan reported that AT &T received awards from J.D. Powers and Associates for residential television service. He added that television, internet, and telephone service can be obtained independently. Jim Mosher addressed miniaturization of electronics and expressed concern that the design of the cabinets have not been as well thought out and believed that there should be a commitment that the size of the cabinets will be reduced when feasible. III. PUBLIC COMMENTS, INCLUDING PUBLIC COMMENTS ABOUT ITEMS ON THE CLOSED SESSION AGENDA Regarding the Closed Session agenda, Jim Mosher requested assurance that the City is not using taxpayer money for its involvement in the Banning Ranch lawsuit. Additionally, he addressed the job performance of the City Attorney, questioned what the performance goals were, and questioned whether they have been met. He believed that the public should be involved in, at least, part of the matter, and referenced a report discussed by the Mayor at prior meeting and asked if the public can have access to it. He commented on the size of the City Attorney's Office and discussed Charter provisions. Mr. Mosher also suggested that public records requests be posted on the website in order to avoid duplication and provide more transparency. He expressed hope that the matter will be placed on a future agenda for direction to staff. IV. ADJOURNMENT - 5:55 p.m The agenda for the Study Session was posted on September 5, 2013, at 4:00 p.m on the City's website; on September 5, 2013, at 4:30 p.m, on the City Hall Electronic Bulletin Board located in the entrance of the City Council Chambers at 100 Civic Center Drive; and on September 5, 2013, at 4:00 p.m. in the Meeting Agenda Binder•lo_cated in the entrance of the City Council Chambers at 100 Civic Center Drive. City Clerk Recording Secretary Mayor DP m•'e 61 265 G ffi W. �� C 1� `\ : � ti �]" a0� C'e . � . �.� � �; .MOM E City Council Minutes Regular Meeting September 10, 2013 — 7:00 p.m. I. STUDY SESSION - 4:30 p.m. II. CLOSED SESSION - 5:55 P.m. A. CONFERENCE WITH LABOR NEGOTIATORS (Government Code § 54957.6): Heading Agency Designated Representatives: Dave Kiff, 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 (N.BCEA); 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); and Newport Beach Professional and Technical Association (NBPTEA) B. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Government Code § 54956.9(a)): Banning Ranch Conseruancy u. City of Newport Beach (Read Parties in Interest: Newport Banning Ranch, LLC, Aera Energy, LLC, Cherokee Newport Beach) Orange County Superior Court Case No. 30- 2012 - 0593557- CU- WM -CXC C. PUBLIC EMPLOYEE PERFORMANCE EVALUATION (Government Code § 54957): Title: Aaron C. Harp, City Attorney III. RECESS IV. RECONVENE AT 7:00 P.M. FOR REGULAR MEETING V. ROLL CALL Present: Council Member Gardner, Council Member Petros, Mayor Pro Tem Hill, Mayor Curry, Council Member Selich, Council Member Henn, Council Member Daigle VI. CLOSED SESSION REPORT � � VO)IU e 61 -tP ge 266 City of Newport Beach City Council Minutes September 10, 2013 City Attorney Harp reported that, regarding Item II B., the Banning Ranch developer is paying all the costs and fees associated with the litigation pursuant to the indemnity agreement. Regarding Item II A., he stated that the report from Closed Session will be postponed until consideration of Item 20 (Residential Solid Waste Service Proposals). He indicated that Council will be asked to re- agendize this matter at that time. VII. PLEDGE OF ALLEGIANCE - Council Member Daigle VIII. INVOCATION - Mr. Frank Carpenter IX. Literacy Day Proclamation - Mayor Curry read the proclamation and presented it to Jason Brady, President of the Newport -Mesa ProLiteracy Advisory Board. Mr. Brady addressed the impacts the program is having on the community and expressed his appreciation for the City's support over the years. He described the program, including its mission, program participants, and volunteer tutors, and invited the public to attend International Literacy Day on Thursday, September 12, 2013, from 10:00 a.m. until noon at the Central Library. Check from Newport -Mesa ProLiteracy - Jason Brady, President of the Newport -Mesa ProLiteracy Advisory Board presented a $35,000 check to the City which represents a portion of the funds raised. Check from the Newport Beach Public Library Foundation - Library Services Director Cowell introduced Tracy Keys from the Library Foundation who presented Council with a check for $162,000. Presentation of Plaques and Outgoing Board and Commission Members - Mayor Curry recognized Christopher Trela, former Arts Commissioner; Michael Toerge, former Planning Commissioner; and Gil Lasky, former City Arts Commissioner. Michael Toerge provided a summary of his service on the Planning Commission and expressed his appreciation for the opportunity to serve. He encouraged all citizens to get involved in City government and listed lessons learned along the way. Christopher Trela expressed his appreciation for the opportunity to serve on the City Arts Commission. X. NOTICE TO THE PUBLIC XI. CITY COUNCIL ANNOUNCEMENTS OR MATTERS WHICH COUNCIL MEMBERS WOULD LIKE PLACED ON A FUTURE AGENDA (NON- DISCUSSION ITEM) Council Member Gardner reported having been approached by surfers who were concerned about the black ball regulation and announced that a report will be brought before the Parks, Beaches and Recreation Commission. She referenced NBTV and Visit Newport Beach, Inc. (VNB) and hoped that a status report will be provided in the near future. Additionally, Council Member Gardner referenced a Tsunami study and suggesed s e�dul g Sidy Session to review the issue. She V a\267 City of Newport Beach City Council Minutes September 10, 2013 reported receiving a plea from a mooring holder who lost his mooring because of unpaid fees. She indicated that there might have been some confusion regarding a change of address. She emphasized that staff followed the City's policy and asked about next steps. City Attorney Harp reported that the action was taken following recommendations made by the Harbor Commission to revoke the mooring and that Council could have appealed the matter, but no Council Member chose to do so. He added that under the Newport Beach Municipal Code (NBMC), Council is time barred from reconsidering the matter, noted that multiple notices were sent prior to the revocation of the permits and that there was a hearing by the Harbor Commission. He stated that one option would include adopting an ordinance overriding the NBMC to reconsider the item, but that would be outside the normal procedure. He commented on the timeline and stated that the permittee was aware of the matter and the window where the matter could have been brought up for consideration. Council Member Petros reported attending a Newport Crest Homeowners Association barbecue on August 28, 2013, and commented positively on the event. Additionally, he announced that a Hootenanny will be held in Newport Heights on September 22, 2013, from 11:00 a.m. to 2:00 p.m. at Cliff Drive Park in order to talk about issues related to West Newport and the Newport Heights. Council Member Daigle reported that the Orange County Board of Supervisors approved hiring consultants that will support all environmental impact studies necessary to extend the City's John Wayne Airport (JWA) Settlement Agreement, adding that costs will be split 50/50 with the County. She emphasized that the goal is to complete the draft for the public in early 2014 with a subsequent review process and potential completion by summer 2014. Council Member Daigle also reported spending this past summer riding bicycles along the mountains -to -sea trail which highlights the open space holdings between the cities of Irvine and Newport Beach. She reported that the City of Irvine had a bond measure in the 1980s related to open space and that the City of Newport Beach has not had one since 1952, even though, the City has accumulated large amounts of open space. She concluded by reporting on the latest efforts related to Big Canyon Creek and stated that volunteers are needed for the project. Council Member Henn annoumced that the Balboa Village Advisory Committee (BVAC) will hold an Urban Land Institute Technical Advisory Panel (ULITAP) exercise on September 11, 2013, and will be presenting ideas on how the Balboa Village can continue its revitalization process. The joint meeting of BVAC, the City Council, and the Planning Commission will begin at 4:00 p.m. in the Balboa Pavilion and encouraged Council and the public to attend. Additionally, he announced an E- Waste collection event scheduled for September 14, 2013, between 9:00 a.m. and 1:00 p.m. at the old City Hall site. He reported that the next meeting of the Tidelands Management Committee will take place on September 18, 2013, at 4:00 p.m. in the Civic Center Community Room and addressed items on the agenda for consideration. Council Member Henn referenced approval by the Planning Commission of variance requests related to Woody's Wharf and expressed concerns that the approvals are not consistent with the interests of the community, and reported that the matter will be appealed to Council. Council Member Selich commented positively on the recent First Annual Taste of Balboa Island. Mayor Curry reported welcoming the British Council General to the City and attending the Coastline Car Classic in Corona del Mar. XII. PUBLIC COMMENTS ON CONSENT CALENDAR Don Rypinsky, representing the property owners at 3101 Clay Street (Item 7), noted that the owners, ages 93 and 87, are delighted with their I,p ty, are presently adding on to it, and are U me 61u- 216f8 City of Newport Beach City Council Minutes September 10, 2013 hopeful that Council will approve their request. XIII. CONSENT CALENDAR A. READING OF MINUTES AND ORDINANCES 1. MINUTES FOR THE AUGUST 13, 2013 STUDY SESSION AND REGULAR MEETING. [100 -2013] Waive reading of subject minutes, approve as written, and order filed. Council Member Daigle abstained on this item. 2. READING OF ORDINANCES. Waive reading in full of all ordinances under consideration, and direct the City Clerk to read by title only. B. ORDINANCES FOR ADOPTION 3. ADOPTION OF ORDINANCE NO. 2013 -14 AMENDING THE HARBOR COMMISSION'S PURPOSE AND RESPONSIBILITIES. [100 -2013] Conduct second reading and adopt Ordinance No. 2013 -14, An Ordinance of the City Council of the City of Newport Beach Repealing Ordinance No. 2001 -25 and Amending the Harbor Commission's Purpose and Responsibilities. 4. ADOPTION OF ORDINANCE NO. 2013 -16 ADDING CHAPTER 10.68 TO THE NEWPORT BEACH MUNICIPAL CODE PERTAINING TO TARGETED RESIDENTIAL PICKETING. [100 -2013] Conduct second reading and adopt Ordinance No. 2013 -16, An Ordinance of the City Council of the City of Newport Beach Adding Chapter 10.68 to the Newport Beads. Municipal Code Pertaining to Targeted Residential Picketing. Council Member Daigle abstained on this item C. RESOLUTIONS FOR ADOPTION 5. RESOLUTION SUPPORTING THE LEAGUE OF CALIFORNIA CITIES AND CALIFORNIA POLICE CHIEFS' ASSOCIATION EFFORTS TO IDENTIFY AND ENACT STRATEGIES TO ENSURE THE SUCCESS OF PUBLIC SAFETY REALIGNMENT. [100 -2013] Adopt Resolution No. 2013 -66, AResolution of the City Council of the City of Newport Beach Calling Upon the Governor and Legislature to Enter into Discussions with League and California. Police Chiefs' Association Representatives to Identify and Enact Strategies that will Ensure the Success of Public Safety Realignment front a Local Municipal Law Enforcement Perspective. D. CONTRACTS AND AGREEMENTS 6. PROFESSIONAL SERVICES AGREEMENT WITH VALLEY SOIL, INC., FOR THE LANDSCAPE IRRIGATION RUNOFF REDUCTION PROGRAM (C- 5586). [381100 -2013] a) Approve a Professional Services Agreement with Valley Soil Inc., at a not to exceed cost of $180,000 to provide and install weather -based irrigation controllers and provide related customer-service activities, and authorize the Mayor P"e-21�,Page\269 City of Newport Beach City Council Minutes September 10, 2013 and City Clerk to execute the Agreement; and b) approve Budget Amendment No. 14BA -013 recognizing $180,000 in revenue (Account No. 255 - 48891) from Municipal Water District of Orange County ( MWDOC) and appropriating $180,000 to the MWDOC Rebate Project (Account No. 7255- C5100968). REQUEST TO RETAIN EXISTING PRIVATE IMPROVEMENTS WITHIN THE PUBLIC RIGHT -OF -WAY AT 3.101 CLAY STREET. [100 -2013] a) Waive City Council Policy L -6, Private Encroachments in the Public Rights -of -Way, to allow a white vinyl picket fence with posts to encroach up to 8 -feet 5- inches into the Clay Street and Catalina Drive rights -of -way, contingent upon all conditions of the Encroachment Permit process being met; and b) direct staff to enter into an Encroachment Agreement with Owners, and authorize the City Manager and City Clerk to execute the Encroachment Agreement. 8. SHORECLIFF ROAD CATCH BASIN MODIFICATION, REEF POINT BIOFILTRATION SYSTEM, LOS TRANCOS CREEK MAINTENANCE - NOTICE OF COMPLETION OF CONTRACT NO. 5287. [381100 -2013] a) Accept the completed work and authorize the City Clerk to file a Notice of Completion for the project; 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 applicable portions of the Civil Code; and c) release the Faithful Performance Bond one year after acceptance by the City Council. 9. APPROVAL OF AN ON -CALL MAINTENANCE SERVICES AGREEMENT WITH PACIFIC SEWER MAINTENANCE CORPORATION FOR AS- NEEDED SEWER ROOT CONTROL (C- 5587). [381100 -2013] Approve an on -call maintenance services agreement with Pacific Sewer Maintenance Corporation of Oceanside for as- needed sewer root control, and authorize the Mayor and City Clerk to execute the agreement. E. MISCELLANEOUS 10. PLANNING COMMISSION AGENDAS AND /OR ACTION REPORTS FOR AUGUST 22, 2013, AND SEPTEMBER 5, 2013. [100 -2013] Receive and file. 11. RESPONSE TO ORANGE COUNTY GRAND JURY - "THE GOAL OF EQUAL EMPLOYMENT OPPORTUNITY: NO VICTIMS ". [100 -2013] Authorize the Mayor to send a response to the Presiding Judge of the Superior Court. 12. RESPONSE TO ORANGE COUNTY GRAND JURY - "TO PROTECT AND TO SERVE: A LOOK AT TOOLS TO ASSIST LAW ENFORCEMENT IN ACHIEVING POSITIVE OUTCOMES WITH THE HOMELESS MENTALLY ILL ". [100 -2013] Authorize the Mayor to send a response to the Presiding Judge of the Superior Court. 13. BUDGET AMENDMENT TO ACCEPT A CHECK FROM THE NEWPORT BEACH PUBLIC LIBRARY FOUNDATION AND APPROPRIATE FUNDS TO THE LIBRARY'S FISCAL YEAR 2013 /2014 MAINTENANCE AND OPERATION BUDGET. [100 -2013] Approve Budget Amendment No. 14BA -009 to increase revenue estimates by $162000 in AAccounv 4090 -5893 (Library Foundation) and to I —� 1'� \ I� I Uolhrn 6P -Page 270 City of Newport Beach City Council Minutes September 10, 2013 increase expenditure estimates by the same amount in Division 4090 (Library Foundation) and Division 4060 (Literacy Services). 14. BUDGET AMENDMENT TO ACCEPT A CHECK FROM NEWPORT/MESA PROLITERACY AND APPROPRIATE FUNDS TO THE LIBRARY'S FISCAL YEAR 2013 /2014 MAINTENANCE AND OPERATIONS BUDGET. [100 -20131 Approve Budget Amendment No. 14BA -010 to increase revenue estimates by $35,000 in account 4010 -5901 (Private Donations) and to increase expenditure estimates by the same amount in Division 4060 (Literacy Services). 15. ORANGE COUNTY REAL ESTATE FRAUD PROSECUTION TRUST FUND AWARD. [100 -20131 a) Authorize the City Council to accept a $16,000 award granted to the Police Department by the Orange County Real Estate Fraud Prosecution Trust Fund per Council Policies F -3 and F -25 (to comply with Council Policy F -3, City Council must formally accept the award of $16,000 and create a new appropriation to expend the money); b) approve Budget Amendment No. 14BA -011 increasing revenue appropriations by $16,000 in 1820 -489E; and c) per the award letter, carryover unspent funds for Fiscal Year 2012 -2013. 16. ACCEPTANCE OF 2013/2014 STATE OF CALIFORNIA, OFFICE OF TRAFFIC SAFETY (OTS), DRIVING UNDER THE INFLUENCE (DUI) ENFORCEMENT AND AWARENESS PROGRAM GRANTS #PT1409 AND #SC14284. [100 -20131 a) Authorize the City Council to accept a $282,910 "Selective Traffic Enforcement Program" (STEP) award granted to the Newport Beach Police Department by the OTS per Council Policies F -3 and F -25 (to comply with Council Policy F -3, City Council must formally accept the award of $282,910 and create a new appropriation to expend the money); b) approve Budget Amendment No. 14BA -012 increasing Police revenue estimates and expenditure appropriations by $282,910; c) authorize the City Council to accept a $75,500 "Sobriety Checkpoint Grant Program" award granted to the Newport Beach Police Department by the OTS per Council Policies F -3 and F -25 (to comply with Council Policy F -3, City Council must formally accept the award of $75,500 and create a new appropriation to expend the money); and d) approve Budget Amendment No. 14BA -012 increasing Police revenue estimates and expenditure appropriations by $75,500. Motion by Mayor Pro Tem Hill, seconded by Council Member Selich to approve the Consent Calendar; noting Council Member Daigle's abstentions to Items 1 and 4. 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 - None XV. PUBLIC COMMENTS ON NON - AGENDA ITEMS George Schroeder announced that Speak Up Newport will be hosting a public forum preparedness on September 11, 2013, at 6:00 p.m. in the Civic Center Community addition, he noted the existence of an Emergency Operations reported that a tour will be provided after the public forum. U 1' m" 61` Pa ��71 U Center in the new Civic on disaster Room. In Center and City of Newport Beach City Council Minutes September 10, 2013 Todd MacFarland expressed concerns regarding increased speed limits on narrow residential streets. He referenced a prior street survey conducted by the City and its actions to increase speed limits on residential streets. He listed recent incidents in his neighborhood and suggested that the City take steps to reduce unsafe speeds on local, residential streets. He asked that Council reopen the discussion and direct staff to re -visit the policy and return neighborhoods to safe conditions. Rick Smith referenced the Broken Windows Theory and the failure of Code Enforcement to address after -hour deliveries at a local store and an abandoned car in his neighborhood. He believed that accountability in the City is lacking and referenced other cities that have implemented quality standards within their Police Departments that have resulted in decreased crime. Geoff Willis, attorney representing Newport Citizens for Safe Speed, commented on dangerous and unsafe driving speeds on residential streets. He noted working with staff to address the matter and referenced written communication he distributed that offer a solution to the problem. He reported that Council has the discretion to set speed limits, referenced an ordinance addressing traffic- calming measures, and Council's subsequent action to raise speed limits to match unsafe driving speeds. He discussed actions taken by surrounding cities to reduce speeds on residential streets and Vehicle Code 5.15 in defining residential streets. He urged Council to approve a map -plan change to submit to Caltrans, recognizing residential streets as local and implementing reduced speed limits. He listed documentation provided to Council to facilitate the process. James Van Orten commented on the need for and benefits of a real -time crime watch forum on the City's website, discussed blind spots in residential areas because of existing City bushes, and suggested placing bubble mirrors on telephone poles across alleys for increased visibility. It was noted that information related to crimes in the City can be obtained at Nixle.com. Tara Riley- Tongue, representing families living on Aralia Street near Corona del Mar High School, expressed concerns with increased parking problems related to students parking on the residential streets. She referenced a High School policy which only allows Seniors to park in the front lot and suggested that they change their policy to allow fast- come - first- served parking to reduce the problem. She discussed loitering, littering, noise, and other minor crimes in connection with students parking on Aralia Street. She addressed surveys conducted and asked Council for assistance. Council Member Petros noted that he understands the issues and that he and Public Works Director. Webb are working on keeping the matter moving forward and is committed to meet with School Board Members regarding the matter. Council Member Daigle added that the City has made a number of changes over the years and noted that it is not an easy problem to address without the cooperation of the School District. In response to Mayor Pro Tem Hill's question, Ms. Riley- Tongue reported on prior communications with the High School. Mayor Pro Tern Hill suggested that she also make a presentation to the School Board. Mara Krista reported that Newport Harbor High School has restricted parking and asked for the same for their neighborhood. She indicated their desire to work with the School District to develop a comprehensive plan and noted that they have signs prohibiting student parking but they are unenforceable. She complained of blocked driveways and expressed concerns not only about access to homes, but safety. She urged Council to consider permit parking on Aralia Street on a temporary basis until the issue is addressed. / \�� Do me 61�_Paa a -272 u City of Newport Beach City Council Minutes September 10, 2013 Jim Mosher commented on the process of receiving public comments, and referenced Council's prior actions to restrict public comments to three minutes, and believed that time restrictions minimizes public comments to Council. XVI. ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES Council Member Petros reported that the Bicycle Master Plan Oversight Committee met on September 3, 2013, in the Civic Center Community Room and noted that approximately 60 people attended to mourn the loss of Deborah Dean, a local cyclist and attorney, and wife of Paul Dean who was a local bicycle shop owner. He reported that the agenda for the Committee was continued and he will provide further information in another month. Council Member Henn reported that BVAC met on August 14, 2013, and provided information to the members of ULITAP. He reported that discussions also took place for recommendations revising the parking governance in Balboa Village which will be presented to the City Council at a future meeting, along with other recommendations to advance the Master Plan for the revitalization of Balboa Village. Council Member Selich reported that the Land Use Element Amendment Advisory Committee met on September 3, 2013, and continued its review of land use amendment proposals. Additionally, the Committee held its first public outreach meeting on September 9, 2013. He also announced that the Committee will be meeting on September 17, 2013, at 3:00 p.m. at the OASIS Senior Center to review final land use element proposals. XVII. PUBLIC HEARINGS 17. AMENDMENT TO TITLE 19, SUBDIVISION CODE, REVISING THE REQUIRED FINDINGS FOR LOT MERGERS (PA2013 -172). [100 -2013] Planning Manager Alford provided a staff report, addressing the purpose of the proposed amendment, prior findings of the Planning Commission related to the issue, and the City Council's recent direction. Council Member Gardner discussed efforts to provide finite definitions and believed that the issue has not been well defined. Further, there has been no improvement and that an opportunity has been missed. Mayor Curry opened the public hearing. Hearing no testimony, he closed the public hearing. Motion by Council Member Selich, seconded by Mayor Pro Tern Hill to find that the proposed amendment is not subject to the California Environmental Quality Act (CEQA) pursuant to Section 15061.b.3 of the CEQA Guidelines; and c) introduce Ordinance No. 2013- 17, An Ordinance of the City Council of City of Newport Beach Approving Amendment to Title 19 of the Nlunicipa.t Code (Subdivisions) to Revise Findings Required for Mergers of Contiguous Lots, and pass to second reading on September 24, 2013. The motion carried by the following roll call vote: Ayes: Council Member Petros, Mayor Pro Tern Hill, Mayor Curry, Council Member Selich, Council Member Henn, Council Member Daigle Noes: Council Member Gardner nm��iPlr ` - .. g City of Newport Beach City Council Minutes September 10, 2013 18. ANNUAL MONITORING REVIEW OF DEVELOPMENT AGREEMENT NO. 14: NEWPORT COAST (C -3382) (PA2011 -030) . [381100 -2013] Deputy Community Development Director Wisneski provided a staff report and reported receiving the required information from the applicant to substantiate that they have complied with the Development Agreement requirements. Mayor Curry opened the public hearing. Hearing no testimony, he closed the public hearing. Motion by Council Member Selich, seconded by Council Member Daigle to find that the applicant has demonstrated good faith compliance with the terms of the Development Agreement; and c) receive and file an annual report of the Annexation and Development Agreement. 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 19. WAIVER OF CONDITION NO. 8 FOR "AERIE" PROJECT - 201-205,207 CARNATION AVENUE AND 101 BAYSIDE PLACE (C -4123) (PA2013 -155). [381100 -2013) Principal Plainer Campbell addressed the project background, prior action by Council approving the project, description of the project, reduction of the project scale by the Coastal Commission, and a request by the applicant to waive Condition No. 8 related to removing the requirement for a surety bond. He highlighted the recommendations listed in the staff report. Council Member Gardner discussed a situation where a house went into foreclosure, was half completed, and became an eyesore; however, after much effort, the bank agreed to demolish the house. She asked how staff would address the issue if this project faced a similar situation. Principal Planner Campbell reported that the City would continue to retain the ability to require the party /parties controlling the property to correct and eliminate any nuisance - Additionally, the applicant is providing construction financing and that there is a financial institution underwriting the project. Mayor Curry opened the public hearing. Hearing no testimony, he closed the public hearing. Motion by Council Member Petros, seconded by Council Member Selich to a) find that the proposed amendment is not subject to the California Environmental Quality Act (CEQA) pursuant to Section 15061.b.3 of the CEQA Guidelines; and b) adopt Resolution 2013- 67, A Resolution of the City Council of the City of Newport Beach Waiving Condition No. 8 Imposed by City Council Resolution No. 2009 -52 for the 'AERIE" Project Located at 201 -205, 207 Carnation Avenue and 101 Boyside Place (PA2013 -155). 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 z ' m61VPag2'74 V u City of Newport Beach City Council Minutes September 10, 2013 XVIII. CURRENT BUSINESS 20. RESIDENTIAL SOLID WASTE SERVICE PROPOSALS (C- 5521). [381100 -20131 City Manager Kiff utilized a PowerPoint presentation to address background, issues important to the City, and reasons for outsourcing, including unfunded PERS liability, City retirement payments, employee contributions, and alternatives available to the City to slow down the growth of pension costs. He reported that pension costs will continue to increase even with the current efforts and presented projected future City retirement payments, future annual payments to PERS, and increasing healthcare costs. He also provided examples of how the City outsources, issues considered in the decision to outsource, and provided a list of services outsourced in recent years. Municipal Operations Director Harmon addressed refuse collection staffing, reductions, and overtime. He reported that the City hired four temporary, full -time employees to help, but the City continues to increase in overtime hours. He also reported on workers compensation claims. Mayor Curry commented on emails received from residents indicating the desire for the City to take care of its employees while keeping the manual collection of refuse in place. He noted that the two are incompatible objectives, that maintaining the current service has led to substantial injuries which are very costly to the City, and stressed the need for automation. Municipal Operations Director Harmon stated that, of the current 14 refuse collectors, 10 will be eligible for retirement within the next 3 years. City Manager Kiff presented details of total compensation for refuse workers. Mayor Curry commented on the cost to have refuse workers and questioned how keeping the service in -house at those costs could be justified. Municipal Operations Director Harmon addressed refuse equipment, policies related to the replacement of refuse trucks and related costs. He added that the contractor in charge of refuse collection in Newport Coast has not had a single workers compensation claim since 2009 due to their use of automation. Laith Ezzet, HF &H Consultants, LLC, presented details of the Request for Proposals (RFP) process, related public meetings, and the evaluation of proposals. He reported that there was considerable competition and interest, and that the prospective vendors responded to two proposal paths. He presented details of the collection alternatives included in Path #1 (existing collection system) and Path #2 (semi - automated system). He reported that, under Path #2, the customer would have a choice of container sizes and recycling participation would be voluntary. He added that there would be some processing of mixed trash in Path #2 and added that other containers or bags could still be set out for pick up. Council Member Henn pointed out that the cost comparisons relate to net incremental cost reductions. Mr. Ezzet presented a list of the proposers which included private and publicly - traded companies, as well as the Newport Beach Employees League. Additionally, he highlighted the seven -year net cost to the City and addressed the process for development of the projections. He noted that all of the company's proposed purchasing the City's existing vehicles and one company proposed a $125,O�sig�bonus -they�w �e awarded the contract. He reported �ume 61�Page 276 City of Newport Beach City Council Minutes September 10, 2013 that the two lowest bidders were CR &R for Path #2 and Ware for Path #1. He added that the City currently has a contract, which expires in June 2015, with CR &R for processing mixed trash and noted that Ware is proposing to use that contract. He stated that the contract has five one -year extension options and that CR &R or the City could choose to terminate the contract during the extension periods. He reported that both companies provide service to the City, have ample experience, and are both well- received in their reference checks. Municipal Operations Director Harmon reviewed current services and staffs recommendations for an automated program. He addressed differences in service between the two alternatives and explained differences between fully- automated and semi - automated services. City Manager Kiff addressed key issues, noting that both CR &R and Ware have demonstrated good service in the community. He presented results of a 2010 community survey and a review of the wealthiest communities in California that are privately- served. He pointed out that, of Orange County cities, Newport Beach is the only city that is providing manual service. He presented details of the contract and cost, terms, service standards and penalties, and explained the $17 million savings. City Manager Kiff stressed that City employees need to be protected and referenced a Letter of Understanding that was approved during Closed Session with the Newport Beach Employees League (NBEL) that guarantees that all employees who work in the Refuse Division will have choices ahead of them. City Manager Kiff listed the options available to those employees if Council decides to outsource the service. Mayor Curry reported that many of the emails received have to do with protecting the City employees. He addressed the Letter of Understanding that Council approved in Closed Session that goes into effect if Council decides to outsource the service. He thanked the employees for the great job they are doing and the partners they have been in the negotiations, and emphasized that Council is committed to taking care of the City's employees. In response to Council Member Henn's question, City Manager Kiff confirmed that there will be no layoffs if Council decides to outsource refuse service. Council. Member Gardner noted that Council has tried to make Newport Beach a leaner City in terms of staffing levels, not just in the Municipal Operations Department, and has had very Few layoffs. City Manager Kif£ indicated that the health of the City depends on the reduction of heavy City costs. Mayor Curry expressed concerns about the high cost of employee pensions and workers compensation claims. He added that basic workplace safety requires the use of automated refuse collection wherever possible. He addressed compensation to the workforce and noted that recent and expected retirements in the next three years means that the City will have almost a 2/3 turnover in the Refuse Division, so the City will be forced to hire new employees at a time when the City is reducing the workforce. Mayor Curry stressed the need to make decisions now, because it is the time to replace collection vehicles; however, doing so will drain the vehicle replacement reserve. He commented on the benefits of privatization by other communities. Council Member Henn discussed the importance of preserving service standards while also keeping costs down. He expressed concern that a provider may present a low bid to get the business and subsequently reduce service standards in an attempt to increase profit. He stressed the need to have a clear understanding -of=what the standards of service are. g�x IIU 9�1/ 61 \P276 City of Newport Beach City Council Minutes September 10, 2013 In response to Council Member Henn's questions, Dean Ruffridge, Senior Vice President of CR &R, indicated that CR &R understood and agreed with the level of service they would be required to provide under the contract regarding frequency of service, the amount of trash they will pick up, voluntary recycling, selection of containers, the terms of the contract, and related costs, and that the required level of service will be provided within the dollar amount contained in their bid. He presented examples of the quality of service that CR &R provides and has provided for over 50 years. He also noted that they service complex areas like the City of Avalon and the City of Hemet. He guaranteed that CR &R will provide quality service to Newport Beach. Council Member Daigle stated that she has a friend who lives in San Clemente; where CR &R is a provider, and stated that the company will only pick up trash if it is in a container. Mr. Ruffridge reported that San Clemente is under a fully- automated system and a different level of service than what is being proposed for the City, which is a semi - automated system. In response to Council Member Selich's questions, City Manager Kiff reported that the City's pension costs are on a 20 year smoothing plan and is attempting to take care of unfunded liabilities within 30 years. He addressed pension contributions, indicated that the costs shown are in future dollars, noted that they make up over 10% of the City's budget, and reported that pension contributions will be approximately 40% of the City's future budget in 2039. He added that, of the unfunded liability, 63% is locked into retirement payments paid directly to retirees. Council Member Selich requested clarification on the numbers provided. City Manger Kiff expressed the opinion that the City cannot sustain that much growth in its budget and emphasized the need to stay flat in order to meet its liability. He noted that the Refuse Division has the third highest workers compensation cost in the City behind Police and Fire. Additionally, he reported that approximately half of the Refuse Division employees make $100,000 a year. Mayor Pro Tem Hill indicated that "business as usual" is not an opportunity. He questioned outsourcing when the City can deliver equal or better service at a lower cost, and questioned whether the City will be achieving this. He expressed concern over maintaining residents' quality of life. He commented on the community's love of Police, Fire and refuse employees and believed that, if consideration is given to outsourcing, additional consideration must be given to the employees. He believed that the Newport Beach path has not been identified, addressed ranking of the bidders, and believed that the formula that correctly evaluates quality of life has not yet been found. Mayor Pro Tem Hill expressed the opinion that there is more work to be done, things will be different, and agreement with the public has not been achieved. He acknowledged the value of the information presented, but noted that more time is needed to evaluate the issues. He indicated that he prefers that the search be broadened to include Rainbow and Republic, and to have more discussion in order to allow the public to digest the information and options. Council Member Gardner believed that the manual collection system is barbaric and needs to be changed to semi - automatic or automatic. Jim Miller stated that Council wants the same thing as residents - both do not want high costs in the future or to pay large amounts to private companies for trash collection. He reported that CR &R serves Costa Mesa whose residents pay more per household than residents of Newport Beach. He expressed concern that rates will increase after termination of the contract and asked tl� Council give ^minity time to review the matter more V l age 277 City of Newport Beach City Council Minutes September 10, 2013 closely Steve Crow expressed concerns with the numbers presented and commented on the lack of proper equipment. He expressed the opinion that the City should have replaced the vehicles and implemented automated service eight years ago. He commented on practices in West Los Angeles, believed that consideration should be given to other places in the City, commented favorably on the quality of the City's refuse team, and believed that the City should do a better job of protecting its employees. Rod MacDonald believed that not enough analysis has been done on the proposals and that anything different than a 10% spread between high and low bids should present concerns. He recommended that Council allow more time to evaluate the details of the proposals to ensure that citizens are provided the best service possible. He suggested that the City conduct a confidential financial audit of each bidder to determine if the proposals are viable and suggested including members of the public. He urged Council not to rush to a conclusion. Dave Ryan indicated that he.is happy with the City's current collection service and suggested that the City hire younger people at half the salary, purchase new vehicles, and implement automation in order to eliminate liability and improve safety. John Hogan believed that going with the lowest bidder is the worst thing that can be done. He commented on the City's responsibility relative to workers compensation and believed that automation should have been implemented years ago. He addressed the need to have enough staffing to do the job and believed that the City should fix what is broken and keep the service in- house. He noted that the main concern is maintaining the same level of service as the City currently provides and referenced issues with Cliff Drive Park. Mayor Pro Tem Hill reported that the City tried to implement automation a long time ago but residents strongly opposed doing so. In response to Council Member Petros' question regarding the maintenance of Cliff Drive Park, City Manager Kiff reported that City staff maintains the park. George Schroeder agreed that staff previously wanted to automate the service but residents opposed it. He agreed with the need to implement automation. He discussed transfer station costs in the proposal, reported that the City currently uses only 40% of the total capacity for daily use and addressed the possibility of the City leasing out the remaining capacity for additional revenue. He expressed concerns that one of the low bidders has contracts with 27 Orange County cities and they may possibly import refuse from other cities. Mr. Ezzet reported that the transfer station would be used largely for commercial waste collected in Newport Beach, but there is the possibility of partial loads from other local cities. Council Member Henn clarified that, while the transfer station is not used today for commercial trash, we would allow it to be used for commercial waste from the City. Dan Boyd questioned whether the two recommended companies can demonstrate a superior service record to communities they previously serve. He urged Council to give more time for consideration. He commented on other areas of the City that have never used City services, noting that many are not single -family detached homes. He took issue with including the reserve funds in the $17 million savings and that the City will not be returning that money to taxpayers or spending it. He questioned the unintended costs, believed that this is an irrevocable decision, and asked what would happen if this turned out to be a bad decision. He stated that the City has the opportunity to re- toohihe service, and agreed with the need to Vu me 1�Page 27.8 City of Newport Beach City Council Minutes September 10, 2013 implement automation, reduce claims, and comply with SB 343 Stephanie Barger, Earth Resources Foundation and the U.S. Zero -Waste Business Council, believed that the City needs to slow down, educate the public on the various options, and put together a plan. She stated that residents do not want a refuse plan, but rather a resource management plan. She commented positively on the practices of the City of Santa Monica and announced the launch of a new project through zerowastenewportbeach.org to promote reducing, reusing and recycling. She addressed the need to automate, implement a three -bin system and zero -waste policy and consider the impacts resulting from the City's reduction of waste. She indicated that most of the bids on Path #2 are cheaper and noted the need to also look at other paths. Bruce Beardsley commented positively on the City's efforts to protect its employees; however, expressed disappointment at the City's reduction of staff, increased overtime costs, and increased workers compensation claims. He asked Council to take its time and consider the matter carefully. Caroline Fitz - Gibbon commented on Newport Beach being one of the richest cities in the nation and believed that taxes paid by residents should be more than enough to operate the City. She voiced opposition to outsourcing waste collection services and commented on the excellent service provided by City staff. She noted that Council works for the people and it should listen to them and, if necessary, put the issue to a vote. Al Bartolic stated that he is not interested in the City's total liability, but rather waste collection and noted that refuse staff only composes 3% of the total funding. He commented positively on Measure Q and suggested that State Controller John Chang audit the proposals. Nancy Skinner commended Council for considering this issue. She commented positively on an automated system and the recycling options. She acknowledged that this is not an easy decision, but expressed her appreciation and trust in Council to do the right thing for the City. Jim Dastur commented on the discrepancy between the low and high bidders. He addressed the use of excess capacity of the transfer station and understood that the contract allows for a 5% increase, not 2.5 %, and that under unusual circumstances, the City could consider a higher increase than 5 %. He commented on the average hourly wage of current City staff and wages paid by the low bidders, noting that, if they are hired by the contractors, they will be taking a 27% cut in pay. Leslie Miller stated that she has lived in San Marino and Hillsborough, two of the communities mentioned in the report, and that she always had a high waste collection fee. She indicated that she finds it difficult to believe that the rates would remain the same by outsourcing. She urged Council to consider continuing the matter and evaluate the price differentials carefully. She addressed security, questioned how the $17 million savings was reached. Additionally, she commented on beach cleanup, stated that conditions have deteriorated and noted that this is a service outsourced by the City. Jeff Newman expressed the opinion that neither of the paths presented are good decisions. He believed that the problem is with CaIPERS and increasing pension costs, not waste collection in the City, and commented on the number of people currently drawing pensions. Council Member Daigle commented on the number of people currently drawing pensions and noted yearly cost -of- living increases. In addition =to the pensions, employees receive medical MM FO 6� Volum' a 61 -Page 279 City of Newport Beach City Council Minutes September 10, 2013 benefits for life as long as they are vested for five years. She believed that is the core issue that the City needs to address. Erin Kinder reported that she once lived in Costa Mesa when they transitioned their waste collection services and stated that it was a horrible experience. Hunter Cook believed that the City departments that are important to residents are Police, Fire, and Refuse, and noted that Refuse staff are the only ones who are in regular contact with residents. He stressed the importance of Council listening to residents. Sandra Ayres expressed appreciation for Council's due diligence and noted the need for them to represent the people. She addressed unplanned consequences, customer service ratings, quality of life, workers compensation costs, and the need to automate. She spoke in opposition to outsourcing and stressed the residents' desire for high quality of service. David Johnson commented positively on the service provided by CR &R. Joe Sloan of Sloan Vazquez, a solid -waste consulting firm based in Irvine, spoke at the request of Dan Boyd and the Newport Heights Homeowners Association. He provided a background on his firm, expressed concerns regarding the diversion of rates between bidders, and noted this is not a typical procurement. Council Member Gardner asked Mr. Sloan to provide written comments for Council's review. Bill Hossfeld noted that, whatever Council decides, it should ensure that a high -level of service is maintained. Dan Otting commented positively on services provided by CR &R, adding that the transition in Costa Mesa was seamless. He expressed the opinion that they would not low -ball a contract, considering the size of the company and the many cities CR &R serves. He believed that they are a reputable firm and pointed out that that the City already has a track record with them. Michael Glenn reported that since migration to Rainbow, there has been a 30 -40% increase in the amount of trash containers that have been knocked over. He hoped that the migration to a private company will not result in the same issue. He believed that Council has an obligation to move forward with automation and convince the public why this would be beneficial to the City. He commented on large -item pickup and noted that the current City staff goes above and beyond what they are required to do. Portia Weiss addressed the importance of high quality of service, commented on the high quality of service provided by the City, and reported speaking to people in other communities who were not happy with their corporate trash pickup. She encouraged the City to continue working with City staff rather than outsource. Tim Stoaks reported that Santa Ana Heights is serviced by CR &R and that he pays for his waste collection services. He expressed the opinion that there is an inequity in the City regarding who pays and who does not, and believed that there are inconsistencies with the ordinance. He added that the proposed contract is much better than the one for Santa Ana Heights and asked, if CR &R is awarded the contract, whether he will get the same benefits at the same rate. He stated that there are still many issues that need to be worked out as a whole City and noted that he has to pay for extra containers. Jeff Dole commented positively on the current refuse service and on the idea of automating 9 Q /� \Ir I C City of Newport Beach City Council Minutes September 10, 2013 and maintaining the same level of service. He stated that he is President of the Balboa Peninsula Point Association and would like to tell them that the City is still considering the Path to take. He encouraged Council to take its time in evaluating the matter to ensure that things will be done right. David Granoff agreed with the previous speaker's comments and thanked the residents who came to speak tonight. He stated that he is passionate about the City staff that service his area and spoke positively about their service. He indicated he would accept whatever decision is made, as long as City staff is happy and taken care of. Gordon Kilmer commented positively on the current refuse service and on the importance of maintaining the same level of service. Steve McNichols expressed concern with the loss of local control by outsourcing and stated that the private companies would not have the same concerns for residents. Jay Ware, General Manager of Ware Disposal, stated that the City would make a good decision if it transitioned its existing service and to another service down the road in order to give residents the opportunity to try out the services. He believed that there are still issues that need to be considered by Council, including labor. He reported that Ware Disposal is a union company and CR &R is not. He noted that he is familiar with the City, Ware is a local business with extensive history, and it knows what residents want. He hoped that Council will consider his company as a provider and continue negotiations. Jim Mosher believed that Council should not make any decision tonight, there should have been a Study Session on the matter for further vetting, the process is flawed, and the public has been deluged with a lot of information without time to digest it. He expressed the opinion that Council should not make a decision based on discussions that it has had outside of the public forum. He addressed the new labor agreement, noting that the public has not seen it nor has it seen the proposals. He asked why the proposals are not considered public documents and commented on information presented that has not been verified. He expressed concerns with the proposal by CR &R because of inconsistencies. Jeff Snow, President of Rainbow Environmental Services, commented on Council's and the community's commitment to service. He indicated that he would be proud to have the refuse staff be a part of the Rainbow family. He expressed the opinion that his company has not been fairly reviewed and commented on the service scores of the other bidders. Additionally, he expressed concerns with the evaluation process and pointed out that he cares for the community, the current refuse workers, and a process that would be fair to all. He asked Council to consider his proposal which keeps the same City employees on the same streets, has a better recycling component, and has competitive rates. He urged Council to take its time considering the proposals and take into account the total value of the services being proposed. In response to public comments, City Manager Kiff reported that, upon termination of the contract, the contract would be re -bid. He noted that Council does not receive full -life benefits and spoke positively on residents' acceptance of implementing automation. He reported that there is an automatic pass- through of costs (landfill rates and fuel increases) to the City if landfill rates increase. Municipal Operations Director Harmon reported that the City places a cap on contract CPI rate increases and that the maximum rate increases by the contractors is capped at 2.5 %. He addressed pass- through costs, noting they are capped at 5 %. City Manager Kiff stated that he will have staff follow -up on beach maintenance issues and reported that everyone pays a $3.00 per month- recycling charge to cover the cost of materials C"meD.-j" � I81 City of Newport Beach City Council Minutes September 10, 2013 recovery, but the public does not get a separate bill for refuse. He confirmed that there are parts of the City that pay separately for refuse and addressed the Measure Q language relative to existing or future, boundary -based costs. Regarding pension costs, he reported that today, they are 14% of the total General Fund and that by 2039 they would increase to 21% of the total General Fund. Municipal Operations Director Harmon noted that there are significant costs involved in bringing the service back in- house. He reported that an automated container runs approximately $50 per container and that, including the cost of seven new trucks at approximately 250,000 each, the total of re- establihing service in -house would be $5 million to $6 million. Further, a staff of 12 to 14 people would be needed with full automation of service. City Manager Kiff clarified his response to Council Member Selichs' previous questions. He was speaking in total budget, not specific to the General Fund. Currently, pension costs take up 14% of the General Fund and by 2039 it will be 21% of the General Fund. Council Member Henn noted that there are two requirements to bring the service back in- house, including political will and dollar costs. He added that, if the political will is there and in light of the City's substantial cash reserves presently exceeding $100 million, the money is there, so there is the ready ability to reverse course in the future in the event that outsourcing does not work. He reported that the independent analysis done by the consultant was even- handed and objective. Regarding the calculations, he indicated that it is a combination of one time benefits, income from the transfer station, and savings on processing costs. He stated the he is satisfied that the analysis conducted was a high quality. In terms of quality of life, he stated that trash service is not the only measure of quality of life in the City. He added that the City's budget is a "zero sum game" and that money spent on trash is money that is not available to spend for other items such as parks, undergrounding of utilities, or improved programs throughout the City. He pointed out that this decision to outsource refuse service does not affect 1/3 of the City, but all residents will be affected to the extent that more money is spent to maintain a high -level of service. He addressed the contract terms and noted that, at the end of the terms, if the cost or service turns out to be less than what is desired, it would be re -bid or could be taken back in- house. He believed that it is appropriate to move forward with the recommendations. Motion by Council Member Henn, seconded by Mayor Curry to direct staff to negotiate with two service providers to prepare and finalize a contract that reflects Path #2, and return to the City Council with a final contract for consideration and /or approval and direct staff to use the time between now and when the matter returns to Council for final action, to do a thorough evaluation of the two top bidders, continue vetting the proposals, consider the input from Sloan Vazquez and return with as full a menu as possible, of additional services to be included in the contract, so there can be no doubt that the level of services on refuse is the highest of anywhere around. Council Member Gardner acknowledged that Council has to make a tough decision and reported that staff has tried to provide as much information for this difficult decision. She referenced a report by Sloan Vazquez and believed that residents may want to review it, but noted the time limitations under public comments. She indicated that she was surprised that references were only gathered for the two low bidders. She commented on other proposals that included more recycling and the use of an anaerobic digester, and expressed interest in reviewing other companies. Council Member Gardner stated that she would rather take one more meeting to gather and review all of the information available. N Volume 6D-JPage -232 u City of Newport Beach City Council Minutes September 10, 2013 Council Member Petros believed that outsourcing this service is the right thing to do in terms of fiscal responsibility and pension obligations, agreed that the issue has to do with CaIPERS, and noted that he was elected to represent the people of Newport Beach. He reported receiving many emails on the subject and stated that there are parts of the City that transcend the dollar and one of those is refuse service. He addressed quality of life and believed that there must be some other way to arrive at savings. He noted that dollars and cents are contained in the document, but indicated that the intangibles are not there, including demonstration of quality of service. He added that the report does not provide the details of the proposals, is uncertain that the comparisons are "apples -to- apples," and stated that he will not support the motion at this time. Council Member Daigle thanked the public for its input and stated that the level of service is the overriding factor. She stated that all cities have moved to private service because of the huge financial burden that residents are paying. She added that taxpayers will not stand for the obligations in connection with refuse collection workers, adding that it is not just salary and benefits, but the long -term pension obligations that come with it. She noted that 1/3 of the City has already transitioned to private service and are very satisfied with it, which is the most compelling argument in support of outsourcing. She believed that once the transition has been completed, residents receiving the service will also like it, and stated that she will support the motion, adding that receiving additional information could go on indefinitely. Mayor Curry acknowledged resident satisfaction of the current service, but pointed out the need to reconsider it in order to be fiscally prudent. He commented positively on the service provided to the City of Irvine. However, Newport Beach has different containers which are often uncovered and make it easier for crows to trash the streets. He stated that Council is often asked to make difficult decisions. He added that other cities do not have inferior refuse collection and that fees and refuse rules are established by the City, noting that Newport Beach hardly has any related rules. He indicated that he will support the motion, commented positively on Council Member Gardner's comments, and believed that this is the right thing for the community and the budget. Substitute motion by Council Member Gardner to receive and review the Consultants Report regarding proposals for residential solid waste services, and direct staff to negotiate with up to two service providers to prepare and finalize a contract that reflects either Path #1 or Path #2, return to the City Council with a final contract for consideration and /or approval and direct staff to use the time between now and when the matter returns to Council for final action, to do a thorough evaluation of the two top bidders, continue vetting the proposals, consider the opinion from Sloan Vazquez, return with as full a menu as possible, of additional services to be included in the contract, so there can be no doubt that the level of services on refuse is the highest of anywhere around and, direct staff to ask the consultant to perform reference checks for Rainbow. The motion failed due to a lack of a second. Council Member Henn stated that he would be happy to consider amending the motion, asking the consultant to return with a full analysis of the top four bidders to fully vet the service quality issues and references and with a resulting recommendation. In response to Council Member Henn's question, Municipal Operations Director Harmon reported that the information can be provided quickly but that negotiations will take longer. Council Member Henn clarified the direction to staff to perform a full analysis of the top four bidders and return to Council withhaa negotiated - contra t with recommendations as to which V 1' m ie e 6E P�I8 City of Newport Beach City Council Minutes September 10, 2013 bidder is the overall, best provider In response to Mayor Pro Tem Hill's question, Municipal Operations Director Harmon reported there was a draft contract attached to the RFP document. Council Member Gardner stated that quality of service is her main concern and hoped that Council would receive additional information regarding the companies' satisfaction rates to evaluate the top three or four bidders. Municipal Operations Director Harmon indicated that his understanding of the direction is that staff will include service elements using the top three bidders and return to Council with a negotiated contract, including the additional requested information. Council Member Henn agreed with the amended motion specifying inclusion of the top three bidders (Ware, CR &R and Rainbow). Amended motion by Council Member Henn, seconded by Mayor Curry to direct staff to negotiate with the top three service .providers to prepare and finalize a contract that reflects Path #2, return to the City Council with a final contract for consideration and /or approval and direct staff to use the time between now and when the matter returns to Council for final action, to do a thorough evaluation of the two top bidders, continue vetting the proposals, consider the opinion from Sloan Vazquez, return with as full a menu as possible, of additional services to be included in the contract, so there can be no doubt that the level of services on refuse is the highest of anywhere around and, direct staff to ask the consultant to perform reference checks for Rainbow. In response to Council Member Selich's question regarding liabilities incurred with a potential Charter amendment or referendum after a contract has been entered into, City Attorney Harp reported that it would occur after expiration of the contract and that the contract could not be impaired. Mayor Curry stated that no matter how the issue turns out, the City is protecting staffs ability to work with the City on an on -going basis. Council Member Henn confirmed that his motion includes an automated path (Path #2) rather than Path #1. Council Member Selich stated that he is opposed to outsourcing this service, noting that Council is elected to represent the people and that, overwhelming, those who have contacted him are opposed to this proposal. He believed that once the service is outsourced, the City will lose control of the quality of service. He added that the City has done a lot of outsourcing with some of it successfully, but others not as successful and listed tree - trimming as an example of reduced work quality. He addressed the proposed savings and stated that it results in approximately 25¢ per day, which equates to $93 per year. He addressed pensions and salaries, and believed that there are other ways to achieve savings. He indicated that he would prefer that the refuse service remain in -house and conduct a study of alternative paths and collection methods. The amended motion carried by the following roll call vote: Ayes: Council Member Gardner, Mayor Curry, Council Member Henn, Council Member Daigle Noes: Council Member Petros, Mayor Pro Tern Hill, Council Member Selich Volumie Page -284 U City of Newport Beach City Council Minutes September 10, 2013 City Manager Kiff noted that Council will need to waive Council Policy A -10 (Procedural Rules for the Conduct of City Council Meetings) in order to start a new item after 11:00 p.m. 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 Daigle Absent: Council Member Henn Motion by Council Member Gardner, seconded by Council Member Selich to waive Council Policy A -10 (Procedural Rules for the Conduct of City Council Meetings). Feconvene 11:26 VI. CLOSED SESSION REPORT - Continued City Attorney Harp reported that, during Closed Session, the City Council approved a Letter of Understanding between the City and the Newport Beach Employees League which was moved by Mayor Curry and seconded by Council Member Henn and carried 6 - 1, with Council Member Selich opposing. Council Member Selich explained that his "no" vote on the Letter of Understanding was because he was not aware that this was being negotiated. He indicated that the document was presented and he did not have time to review it. Further, he clarified that he was not voting against the refuse workers, but believed that it was an improper procedure to approve the Letter of Understanding before making a decision relative to outsourcing. Mayor Curry recessed the meeting at 11:21 p.m. and reconvened the meeting at 11:26 p.m. with all Council Members in attendance. XVIII. CURRENT BUSINESS - Continued 21. CONSIDERATION OF ORDINANCE AMENDING NEWPORT BEACH MUNICIPAL CODE SECTIONS 17.35.020(F) AND 17.60.060 RELATING TO PIERS THAT ENCROACH IN FRONT OF ADJACENT PROPERTIES AND COMMERCIAL INDEMNITY, RESPECTIVELY. [100 -20131 Harbor Resources Manager Miller discussed prior consideration and direction by the City Council, and presented options, including introduction of an ordinance or leaving the process as it currently exists. He addressed provisions of the current NBMC. Motion by Council Member Gardner, seconded by Council Member Daigle to maintain the existing process; that if there is a pier that encroaches on a residential lot, the matter would go before the Harbor Commission. Jim Mosher indicated that he supports Council Member Gardner's motion. He believed that the use of tidal waters is a privilege for the residents, the City should retain control over what is allowed over its waters, and there is no reason for the proposed ordinance. He added that Council should review the existing NBMC and provide clearer criteria by which Council would decide when an encroachment is appropriate. Susan Riddle asked if there is something other_than.an inter - family transfer that can occur DDV m e 81��PN2 8� City of Newport Beach City Council Minutes September 10, 2013 and provides the property owner the ability to sell the property City Attorney Harp reported that staff has carefully drafted the document and has made every effort to close any possible loophole. Council Member Selicb believed that the issue of inter - family transfers is an appropriate situation to provide in the NBMC. City Attorney Harp added that a marine activity permit is required for hourly and daily rentals, and if the permittee abandoned that use, he /she would have to comply with current laws and have no vested rights. Substitute motion by Council Member Selich, seconded by Council Member Henn to introduce Ordinance No. 2013 -15, An Ordinance of the City Council of City of Newport Beach Amending Sections 17.35.020(F) and 17.60.060 of the Newport Beach Municipal Code to Allow Certain Administratiue Transfers of Tidelands Permits and to Require Commercial Tidelands Users to Defend and Indemnify the City of Newport Beach, and pass to second reading on September 24, 2013. Substitute Motion - Selich - approve recommendation 1. Interfamily transfers are appropriate to put into code. concern over use of the dock, but it was used for hourly and daily rentals. that's expired. if wanted to restsabLish, need to new permit. Harp - yes. marine activity permit is required for that type of use. whether he abandoned that other use, he'd have to apply to current law. no vested right. SECOND - Henn. Council Member Henn stated that the proposed ordinance contains more than just the transfer and that it includes an indemnity provision as well, which he is in favor of including. He clarified the intent of the ordinance and noted that, if the property succeeds to someone other than a family member, the property owner would be in violation of the ordinance. City Attorney Harp presented the various scenarios addressed in the ordinance. In terms of transfers between corporations, Assistant City Attorney Torres indicated that the permittee would have to wholly -own or control both corporations. Discussion ensued regarding limiting to family trusts. Council Member Daigle addressed the issue of non - conforming docks and the need to look at the public's interests, and questioned why the non- conformity should continue. City Attorney Harp noted that the City does not want the condition to continue to exist. He recommended reviewing the value in terms of the non - conforming use and added that the owner has a property interest in the dock itself. Council Member Daigle suggested that, to compromise with the property owner, abatement should occur and that the property owner be allowed to amortize the value. She believed that is in the public's interest to eliminate the non- conforming use. Council Member Gardner noted that the existing procedure does not prohibit transfers and that the matter would go before the Harbor Commission for a determination. Discussion ensued regarding the need for the property owner to obtain a new permit, requiring conformance to standards. City Attorney Harp noted ambiguities in the NBMC and that it is implied that he /she could obtain a permit without conforming to certain standards. In response to Council Member Henn's questions, City Attorney Harp pointed out that there are ten other properties facing the same situation and -that pending applications have nothing to do with the transfer of their permit, r, he i that, if the property owner requests a 9 olume 6 �,P,aagge 286 City of Newport Beach City Council Minutes September 10, 2013 change in use, the property would need to be brought into conformance through the Use Permit process. He stated that the non - conforming structure could be kept, but that the use would have to be brought into compliance. Assistant City Attorney Torres added that commercial piers could extend beyond adjacent properties and that this issue has already been decided by the City Council. Larry I {allestad referenced Section 17.35.020(F) and commented on a public dock on Opal Street. He expressed concerns with parking problems and believed that the matter should be changed to conform to other laws related to use by the heirs. He added that merely inheriting property should not automatically result in a resurrection of what was occurring previously. He agreed that a new business use should be required to provide adequate off - street parking. Amended substitute motion by Council Member Selich, seconded by Council Member Henn to a) introduce Ordinance No. 2013 -15, An Ordinance of the City Council of City of Newport Beach Amending Sections 17.35.020(F) and 17.60.060 of the Newport Beach Municipal Code to Allow Certain Adnninistratiue Transfers of Tidelands Permits and to Require Commercial Tidelands Users to Defend and Indemnify the City of Newport Beach, and pass to second reading on September 24, 2013; and b) remove "or between entities wholly owned or controlled by the same person ". Harbor Resources Manager Miller suggested adding, "...family trusts where the same person maintains majority control of family trusts ". Mayor Curry questioned whether this needs to be determined at this time. City Attorney Harp noted that the matter includes complicated issues and that, although making a decision at this time may avoid potential litigation, the matter merits additional consideration. Mayor Pro Tem Hill stated that the City Council should not enact ordinances based on what applications may be submitted on a property. Amended substitute motion to the motion motion by Council Member Daigle, seconded by Council Member Petros to continue the item until the September 24, 2013 City Council meeting. The amended substitute motion to the motion motion carried by the following roll call vote: Ayes: Council Member Gardner, Council Member Petros, Mayor Pro Tern Hill, Mayor Curry, Council Member Henn, Council Member Daigle Noes: Council Member Selich 22. SPECIAL TREE REMOVAL - 300 POPPY AVENUE. [100 -20131 Municipal Operations Director Harmon reported that the matter was approved by the Parks, Beaches and Recreation Commission and that Council Member Gardner requested further discussion at a City Council meeting. He stated that staff is still recommending removal of the tree. Council Member Gardner referenced the City's Policy which designates special trees (Council Policy G -1 - Retention or Removal of City Trees) and believed that, if they are special trees, they should be treated specially. She pointed out that the 300 Poppy Avenue tree is not diseased, but rather is being requested forr\remoin an attempt to repair concrete that has 91r rqU i�\ I8 I City of Newport Beach City Council Minutes September 10, 2013 been lifted. Council Member Selich suggested completely removing the concrete and adding a small bridge structure to avoid the lifting concrete problem. Council Member Petros noted that there are examples of this in the City of Ojai. Discussion followed regarding the possibility of having a problem with compliance with the Americans with Disabilities Act (ADA). Municipal Operations Director. Harmon reported that the tree is in no danger of failing, is not diseased, and the issue relates to safety. He suggested allowing staff to work with the Director of Public Works to determine other possible solutions and return to the City Council at a later date. Earl Magnisen stated that he and his wife are opposed to removing the tree. Paul Band reported that he and his sister, 300 Poppy Avenue property owner, support the City fixing the sidewalk since the tree has caused damage to her property. Further, the tree has become a public nuisance and poses safety concerns. Jim Mosher believed that Council Policy A -10 is a good policy, but noted'that items should be continued to another date if the items discussed are not concluded by 12:00 a.m. He believed that this issue is not urgent and indicated that there were two other trees considered for removal at the last Parks, Beaches and Recreation Commission meeting, but they deferred their decision on those trees until after the City Council made a decision on this issue. Motion by Council Member Gardner, seconded by Council Member Selich to direct staff to return to the City Council with options for resolving the issue. 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 23. APPOINTMENT OF NEW CITY ARTS COMMISSIONERS TO FILL TWO UNSCHEDULED VACANCIES. [100 -2013] City Clerk Brown provided paper ballots to the City Council and read the ballot votes as follows: Judy Chang: Gardner, Petros, Hill, Daigle Joan Templeton - Morris: Hill, Selich, Henn, Mayor Curry Charles Ware: Gardner, Petros, Selich, Henn, Daigle Erik Weigand: Mayor Curry City Clerk Brown announced that Charles Ware has been appointed to the City Arts Commission to serve the unexpired term ending June 30, 2017, and that a second vote will take place between Judy Chang and Joan Templeton - Morris. City Clerk Brown read the ballot votes as follows: Judy Chang: Gardner, Petros, Hill, Daigle Joan Templeton - Morris: Selich, Henn, Mayor Curry City Clerk Brown announced that Judy Chang has been appointed to the City Arts Commission to serve the unexpired term ending-June-30, 2016. CoVolumel-P�e -I8u City of Newport Beach City Council Minutes September 10, 2013 24. RECEIVE SEALED PROPOSALS FOR THE MANAGEMENT OF THE CITY'S OIL, GAS AND OTHER HYDROCARBON RESOURCES (C- 5588). [381100 -2013] Mayor Pro Tem Hill recused himself because of a perceived, potential conflict due to stoeh ownership. City Clerk Brown reported that the City received two bids, one from Oxy USA, Inc., and from E & B Natural Resources and proceeded to open the bids. City Manager Kiff noted that staff will return with a staff report and that no action needs to be taken by the City Council at this time. City Attorney Harp noted that the bids are not available for public review and addressed State Land Use Commission requirements. XIX. MOTIONS FOR RECONSIDERATION - None XX. ADJOURNMENT -Adjourned at 12:23 a.m. on Wednesday, September 11, 2013, in memory of Wade Roberts and Priscilla Moore The agenda for the Regular Meeting was posted on September 5, 2013, at 4:00 p.m. on the City's website; on September 5, 2013, at 4:30 p.m. on the City Hall Electronic Bulletin Board located in the entrance of the City Council Chambers at 100 Civic Center Drive; and on September 5, 2013, at 4:00 p.m. in the Meeting Agenda Binder located in the entrance of the City Council Chambers at 100 Civic Center Drive. City Clerk Recording Secretary Mayor �� I Vo ul me 61VPageI289 u