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HomeMy WebLinkAbout01 - MinutesMarch 11, 2014 Agenda Item No. 1 CITY OF NEWPORT BEACH City Council Minutes Study Session February 25, 2014 - 4:00 p.m. I. ROLL CALL II. Present: Council Member Gardner, Council Member Petros, Council Member Curry (arrived at 4:02 p.m.), Council Member Henn, Council Member Daigle, Mayor Pro Tern Selich, Mayor Hill 1. Clarification of Items on the Consent Calendar - None 2. Southern California Gas Company Advanced Meter Project Jennifer Vaughn, Southern California Gas Company Public Affairs Manager, utilized a PowerPoint presentation regarding the Gas Company's Advanced Meter Project. She presented a description of the project and addressed background, computer access by residents to their gas usage on a next -day basis, installation of radios on meters, monthly bill versus hourly information, benefits of the program, and how the system works. She reported that no service will be lost while radios are being installed and that they will slightly change the dimensions of existing meters by adding a few inches to the face. She indicated that she will check on the dimensions of the radio and provide that information to Council. She also addressed information transmittals and specifications of Data Collection Units (DCUs). Council Member Daigle reported that she works in telecommunications, that the DCUs are highly controversial, and that the Gas Company cannot install a pole in residential areas of the City and asked how the project will work in Newport Beach. Ms. Vaughn presented a map of the City, indicating proposed locations for the poles. She indicated that, whenever possible, co- location on existing street lights is encouraged. She added that the Gas Company is doing everything it can to comply with the City's above - ground Ordinance. Council Member Daigle discussed practices in other cities and stated that this is an emerging and controversial issue. She asked if it was possible to rent space on City poles. City Attorney Harp commented on ordinances applicable to this matter and that rental fees would apply. He added that staff is in negotiations with the Gas Company to review proposals justifying a rent adjustment, as well as the possibility of sharing technology with other utilities. Council Member Daigle reported that most of her district has been undergrounding utilities and expressed interest in reviewing particular applications on the proposed sites to ensure there will be no issues with the installations. Ms. Vaughn reported that the Gas Company is working closely with staff to work out the issues according to what is best for the City. She added that the Gas Company is considering partnering with the City to have the DCUs also read water meters. Council Member Henn noted there are no sites proposed for the Balboa Peninsula, Lido Isle, or Balboa Island. Ms. Vaughn stated that the Gas Company is willing to listen to residents' concerns and, within limitations, have flexibility in terms of where to locate the poles. She noted the need for a redundant system, requiring that the meters be read by at least two DCUs, which may be placed within the boundaries of neighboring cities. She addressed Volume 61 - Page 467 City of Newport Beach City Council Study Session February 25, 2014 Advanced Meter Radio Frequency, comparisons to different wireless technology, and contact information. George Schroeder commented positively on the modifications to electric meters by Southern California Edison (SCE) and noted other issues that must be taken into consideration in reviewing this matter. He added that one of the benefits is that there will not be people walking the neighborhoods reading meters. Jim Mosher commented on the proliferation of antennas, noting that every provider seems to need their own antennas when they should be making efforts to share antennas and infrastructure. He believed that the City's contract with CR &R will add to the number of trips required for waste collection and that the benefits of the Gas Company's program are being negated by the City's current waste collection program. 3. Public Piers Harbor Resources Manager Miller introduced Harbor Commissioners Paul Blank, Dave Girling, Doug West, and Duncan McIntosh. He reported that a presentation has been provided to the Harbor Commission, as well as the Tidelands Management Committee and deferred to Harbor Commissioner Blank. Harbor Commissioner Blank provided a PowerPoint presentation to address the Harbor Commission's objectives relative to public piers. He discussed their approach, steps taken, observations, amenities desired by boaters, areas of concentration for these amenities, and conclusions and recommendations. Council Member Petros asked how the revenues generated from residential piers compare with the costs of implementing the proposed recommendations. Harbor Resources Manager Miller reported that he will report back to Council with this information. Mayor Pro Tem Selich commented positively on the presentation. He agreed with the need for restrooms and suggested implementing signage so the boaters know the restroom locations. He noted the need to maintain finials, as well as installing finials on pilings where they are missing for improved identification of public piers. He recommended monitoring and maintaining the public dock located in the Rhine Channel which the City shares with Schock Boats and installing proper signage to ensure that it is available for public use when Schock Boats is closed for business. Harbor Resources Manager Miller reported that the City intends to refinish existing finials and replace and add new ones, as needed. Council Member Henn stated that the issue for him is how to best move forward with the recommendations. He indicated that it would be a good idea to determine what the proposals cost and figure out a way to include them in the budget. Harbor Resources Manager Miller indicated that he has begun the process and is now focusing on improving the aesthetics of the City's public piers, including new decking, hand rails, and finials. He added that they will be instituting a program where the piers are cleaned twice a week and deep cleaned quarterly or as needed. He stated that the City has budgeted funds for these improvements and added that, when they are deep cleaned, the water is captured. He reported that staff is underway toward implementing some of the recommendations and that, plans are being made to reconfigure some of the floats next year. Additionally, in terms of new piers, the City is partnering with The Irvine Company's Cal Rec marina and going through the CEQA process. This will soon be presented to Council. He reported that Lido Marina Village is considering redoing their marina and there is a component in the plans for a public dock at Central Avenue. Volume 61 - Page 468 City of Newport Beach City Council Study Session February 25, 2014 Council Member Henn added that the Harbor Commission has a committee that is working on Lower Castaways and that a plan may move forward for a public pier there. Harbor Resources Manager Miller commented on the initial vision for Lower Castaways. Council Member Curry commended the Harbor Commission for its efforts, adding that this is the type of investment necessary for the City to continue to renew its economic resources for residents and visitors. Mayor Hill commented positively on the presentation and expressed his full support. He added that he is committed to working with staff to find the funds to install at least two public piers this year. 4. Priority Setting Presentations (RSS, Library, IT, Fire) — A Continuation from 1 -25- 2014 Recreation and Senior Services Director Detweiler provided a PowerPoint presentation to report on a recent Pickleball Tournament. She stated that pickleball is the largest sport actively growing within the United States at this time, and four courts can be accommodated within one tennis court. She presented information regarding the Traveling Tidepool Mobile Interpretive Center, expansion of Senior programs, Citywide volunteer program, community youth center expanded programming, and expanded community -based special events. In response to Council Member Petros' question, Recreation and Senior Services Director Detweiler indicated that staff does a good job in determining the needs of the community and that, upon implementation of new programs and/or facilities, the demand is there. She noted that staff is looking for other venues in order to expand classes and programs. Council Member Petros commented on the concept of a west side community center and encouraged Council to focus on the needs of the entire community and for those areas that may not have the facilities that others do. Recreation and Senior Services Director Detweiler stated that, at the groundbreaking for Marina Park, a group approached her asking if another fitness center like the one at the OASIS Senior Center will be built in the west side. She let them know that staff is focusing on obtaining another facility to expand health and wellness services. Mayor Pro Tem Selich agreed with Council Member Petros' comments regarding the need for a west side community center, noting that the City is currently trying to decide on an appropriate site. Fire Chief Poster utilized a PowerPoint presentation to discuss improvements in the City's paramedic program. He reported that the Newport Beach Fire Department (NBFD) will continue providing the highest standard of customer service expected by residents and visitors. He presented a map of existing Fire Stations, as well as services and staffing provided at each. He added that paramedic services will be added to each Fire Station this year. Chief Poster addressed the importance of reducing response times and pointed out that the NBFD is the only department that has an ambulance available at each station for use, when needed. Additionally, he reported that the NBFD is refining the Active Shooter Program with the Newport Beach Police Department and exploring alternative destinations for non -acute patients. He discussed the launch on March 3, 2014, of PulsePoint, an application that will provide information regarding all the responses going on in the NBFD. He reported that the NBFD is continuing and expanding its Marine Operations and has partnered with Visit Newport Beach, Inc. (VNB) to continue "Ambassador" training to the City's 200 lifeguards. In addition, a consultant is evaluating the NBFD in order to reduce Volume 61 - Page 469 9 City of Newport Beach City Council Study Session February 25, 2014 response times, inventory resources, and consider what allocations and efficiencies can be obtained. The report will be presented to Council within the next six weeks. Council Member Daigle commented on radios for marine safety and asked regarding the state of the City's public safety communications. Chief Poster reported that the City is not in the broadband system yet, but is enhancing its existing infrastructure. The County of Orange will be changing its infrastructure to replace outdated equipment by 2018 and that there is currently a migration from older equipment to newer equipment. In response to Mayor Pro Tern Selich's question regarding coverage in areas such as Crystal Cove, Chief Poster noted that the upcoming report will identify gaps in the system and include areas for which recommendations have been formed, including areas within the City. At present, it is premature to release that information, but it will be presented in the report. Library Services Director Hetherton provided a PowerPoint presentation to address 2014 new amenities, resources, and programs. In response to Council Member Curry's question regarding the expansion, Library Services Director Hetherton discussed the benefits of expanding the Library in conjunction with the new Civic Center, and on how that has facilitated the expansion of programs and amenities. He commented on the use of the study areas located on the second floor. IT Manager Houston utilized a PowerPoint presentation, stating that IT is seen as a support for all the services provided by the City and that IT has been focusing on the road map set within its strategic plan. He addressed specific areas of focus, skilled internal IT experts, outside IT consulting assistance, new hardware, software partners, community connections, and specific highlights for the coming year. City Manager Kiff provided an update of Municipal Operations, including a refresh of older City parks. _ Mayor Hill, on behalf of Council, commented positively on the dedicated efforts of the IT Department in implementing improvements and noted that it is part of the backbone of a smarter, faster and smaller City organization. Regarding refreshing older parks, Mayor Pro Tem Selich discussed medians in the City and positively on staffs efforts relative to work being performed on Harbor Island Drive and other areas in terms of new irrigation systems and drought - tolerant plants. Council Member Gardner commented on the Water Quality /Coastal Tidelands Committee and reported that it will be working on prioritizing City medians. Jim Mosher commented positively on the plans and asked if these are things the community wants. He reported that, in some instances, the City Charter identifies specific bodies that provide additional oversight. He referenced the IT function and noted that, although there was citizen input in formulating the strategic plan, it is an area of large expenditure where there is currently no citizen oversight. He stated that IT has increasingly become the face of the City to the public and questioned leaving decisions entirely up to City staff. He believed that staff has made substantial changes to the City's website without public input and that Council should consider establishing a mechanism for that. In response to Mr. Mosher's comments relative to questioning how staff comes to conclusions about program needs, City Manager Kiff noted that staff receives feedback from the public in many different ways. He added that these are initiatives that come from the community and that a public meeting is not always the forum in which people communicate their needs. Volume 61 - Page 470 10 City of Newport Beach City Council Study Session February 25, 2014 Dr. Jack Skinner stated that he has been involved with Bay water quality issues for a long time and believed that there was going to be a discussion regarding supplying moorings in the Lower Bay with electricity and water. Mayor Hill clarified that the matter will be heard at the Regular Council Meeting (Item 10 - Water Taxi and Multiple Vessel Mooring System). Dr. Skinner spoke in opposition to the proposal, noting an earlier priority to establish the Bay as a no- discharge Harbor. He believed that the proposal goes a step backwards because more and more people will use the moorings, as well as living aboard. He recommended that Council abandon any effort to provide water and electricity to moorings. 5. Business License Requirements and Real Estate Agents Business License Supervisor Navarrete utilized a PowerPoint presentation to discuss business license tax requirements for real estate agents. She provided an overview of the Newport Beach Municipal Code requirements, tax rates, associated revenues from real estate agents and brokers, evaluative factors, California State law, Federal standards and law, legal precedent, examples of standard agreements between brokers and agents, agencies with independent contractors in the City, and the results of a survey of other cities in terms of how they handle such agreements. She addressed other considerations and frequently asked questions and responses. In response to Council Member Henn's question, Business License Supervisor Navarrete reported that the revenue paid by brokers to the City is not broken out per broker per agent. David Girling, Newport Beach Association of Realtors (NBAOR), provided a PowerPoint presentation addressing the NBAOR's position and points supporting the NBAOR's position for the elimination of the Business License Tax (BLT). He referenced a letter by Attorney Tom Jacobson which was presented to the City of Huntington Beach in 2008, when they considered eliminating the tax, which states that the Business License Tax should be eliminated because agents are not true independent contractors. Mr. Girling provided details in support of the NBAOR's position. Additionally, he noted that there is a precedent where other cities in the area have removed the Business License Tax and that most of the cities that have reviewed the matter have repealed it. In response to Council Member Gardner's question, Mr. Girling believed that this tax is unfairly levied on real estate agents. Council Member Curry believed that this is a good time to reconsider the matter and to change the way the City handles this. He noted that real estate is a key industry in the City since it drives the value growth of the real estate market in Newport Beach. Mayor Pro Tem Selich noted that the City of Long Beach eliminated the tax and believed that it seems to be an unfair way of taxation. He commented positively on the points listed in the Jacobson letter and stated that he found no problems relative to the matter in cities that have eliminated the tax. He expressed his support to move ahead and amend the ordinance. In response to Council Member Gardner's question, Mayor Pro Tern Selich stated that the group is unique and referenced the points listed in the Jacobson letter. Council Member Petros agreed with Mayor Pro Tom Selich and stated that this is a good time to continue the discussion. He commented on the Jacobson letter and noted that the City has a section in the Municipal Code for "Real Estate" but it does not distinguish between a broker and an agent, making it likely that the City is double- dipping relative to the implementation of the tax. He expressed support for moving this matter forward. Volume 61 - Page 471 11 City of Newport Beach City Council Study Session February 25, 2014 Council Member Henn expressed concerns regarding brokers -of- record, noting that he /she would pay the same tax as an agent. In response to his inquiry regarding determining business license fees for businesses with a large number of employees, Business License Supervisor Navarrete reported that businesses are required to apply and report to the City how many W -2 employees they have. Council Member Henn believed that, on that basis, brokers -of- record should be taxed on the basis of the number of agents that have nexus to their office. He indicated that he is not interested in changing regulations until that matter is properly addressed. He added that, if the City provides relief to individual agents, it should ensure that it provides the correct treatment for the broker -of- record and stated he would be interested in learning how other cities deal with the issue. He agreed with the need for more information in consideration of the matter. In response to Council Member Daigle's question, Business License Supervisor Navarrete reported that there are three other cities that allow the broker -of- record to pay on behalf of their agents and, if they do not choose to do so, the respective city charges the agent as an independent contractor. In Beverly Hills, the broker is responsible for paying a percentage based on the agents' commissions. Council Member Daigle asked regarding compliance with the IRS designation for "agents" as independent contractors. City Attorney Harp noted that the City has broad discretion in how it makes its classifications, so there should not be any issues. Council Member Daigle noted that independent contractors do not have lobbyists, is not a classified industry, and, therefore, have not followed up regarding this matter with other entities. She expressed agreement with the approach that either the broker pays or the agent pays. W George Schroeder stated that t"Cit s m oving in the right direction and noted that a broker owns the business, but agents work for the broker. He listed related business license fees for the City of Orange compared to Newport Beach, and believed that the current system is not equitable and that changing it would be fair and reasonable. He suggested that, if changed, brokers should be charged the Business License Tax and charged for each agent that works under them. He submitted information and requested that Council change the ordinance to reflect that licensees working under a broker are not independent businesses and that they be exempt from being required to pay the Business License Tax. Jim Mosher noted that one of Council's priorities last year was to clean up the Municipal Code. He commented on the Code section dealing with Business Licenses and Regulations and stated that the uncertainty regarding how real estate agents fit into the Code is not the only uncertainty or problem with the Code. He commented on the difference between taxes and fees, and on specific areas of the Code that need consideration. Craig Batley, real estate broker, reported that agents have no rights to collect money or conduct business independently from a broker and that most brokers have agents sign an "HR Manual" relative to their policies, procedures, and scope of employment. He added that the average real estate agent in California makes approximately $35,000 per year. Mayor Hill commented on his experience as an architect and with independent contractors, noting that every time he had an audit, the State ruled that they were not independent contractors. Mayor Pro Tern Selicb read Huntington Beach's determination regarding this matter Volume 61 - Page 472 12 City of Newport Beach City Council Study Session February 25, 2014 Council Member Henn reported that he will not vote on changes until he understands how the broker -of- record will be dealt with for taxation purposes. Council Member Curry agreed with Mr. Schroeder's comments and reiterated that now is the time to consider this matter and make the necessary changes. III. PUBLIC COMMENTS, INCLUDING PUBLIC COMMENTS ABOUT ITEMS ON THE CLOSED SESSION AGENDA Paul Dolkas, Realtor, noted that some brokers do better than others and some do not, and spoke in support of Council changing the Code. In response to City Manager Kiffs earlier comment, Jim Mosher expressed appreciation for staffs responsiveness to the public's requests, but believed this is not the best way to run government since this dedicates resources to one individual request. He referenced the City Charter and stated that, in response to a citizen request, staff has the responsibility of having that request properly vetted through the appropriate commission. Mr. Mosher commented on a Closed Session Item relative to the review of the City Clerk's position and stated that the City Clerk and her staff have always been courteous and helpful to the public. He noted that the City Clerk reports directly to Council and is intended to be independent of other department staff; however, expressed concern that the City Clerk's Office has to rely on the City Manager for support, including IT, and has no public feedback as to how she is performing. He suggested placing a computer terminal at the City Clerk's Office counter for displaying documents to the public and noted that the agenda font is very small. City Attorney Harp announced that Council will adjourn to Closed Session to discuss the items as listed in the Closed Session agenda and proceeded to read each title. IV. ADJOURNMENT - 6:05 p.m. a LOA 0 The agenda for the Study Session was posted on the City's website, on the City Hall Electronic Bulletin Board located in the entrance of the City Council Chambers at 100 Civic Center Drive, and in the Meeting Agenda Binder located in the entrance of the City Council Chambers at 100 Civic Center Drive on February 20, 2014, at 4:00 p.m. ., V City Clerk Recording Secretary Mayor Volume 61 - Page 473 13 CITY OF NEWPORT BEACH City Council Minutes Regular Meeting February 25, 2014 - 7:00 p.m. I. STUDY SESSION - 4:00 p.m. II. CLOSED SESSION - 6:05 p.m. A. PUBLIC EMPLOYEE PERFORMANCE EVALUATION (Government Code § 54957) Title: Leilani Brown, City Clerk B. CONFERENCE WITH LABOR NEGOTIATOR (Government Code § 54957.6) Agency Designated Representatives: Councilmember Michael F. Henn Unrepresented Employee: Leilani Brown, City Clerk C. CONFERENCE WITH LABOR NEGOTIATORS (Government Code § 54957.6) Agency Designated Representatives: Dave Kiff, City Manager and Terri Cassidy, Deputy City Manager; Negotiators. Employee Organizations: All labor Associations: Association of Newport Beach Ocean Lifeguards (ANBOl); Newport Beach City Employees Association (NBCEA); Newport Beach Employees league (NBEI); Newport Beach Firefighters Association (NBFA); Newport Beach Fire Management Association (NBFMA); Newport Beach Lifeguard Management Association (NB1MA); Newport Beach Police Association (NBPA); Newport Beach Police Management Association (NBPMA); Newport Beach Professional and Technical Employee Association (NBPTEA); and Part -Time Employee Association of Newport Beach (PTEANB). III. ROLL CALL Present: Council Member Gardner, Council Member Petros, Council Member Curry, Council Member Henn, Council Member Daigle, Mayor Pro Tom Selich, Mayor Hill IV. CLOSED SESSION REPORT - City Attorney Harp announced that no reportable action was taken V. PLEDGE OF ALLEGIANCE - Mayor Hill VI. INVOCATION - Council Member Petros VII. PRESENTATION(S) - None VIII. NOTICE TO THE PUBLIC Volume 61 - Page 474 14 City of Newport Beach City Council Regular Meeting February 25, 2014 IX. CITY COUNCIL ANNOUNCEMENTS OR MATTERS WHICH COUNCIL MEMBERS WOULD LIKE PLACED ON A FUTURE AGENDA (NON - DISCUSSION ITEM) Council Member Daigle discussed the Osprey nesting in a City park near the Back Bay and displayed photos, requesting that staff look into the matter with the possibility of installing a protective net, another light standard next to the existing one, or installing additional protection from balls. Additionally, she also discussed significant improvements over the years in the Upper Bay, noting that staff has worked with the Orange County Transportation Authority (OCTA) to add $1.6 million to a project in the Lower Bay Canyon to construct a wetland to filter the runoff from Jamboree. She referenced other activities related to Lower Bay Canyon as listed under Item 9, reported that Vector Control is receiving various agency approvals to reduce the source of water that serves as a breeding ground for mosquitoes, and added that the Irvine Ranch Conservancy has begun a restoration project and is working with community partners. She thanked City staff for its efforts in obtaining the grant. Council Member Curry reported receiving an email from Southern California Edison (SCE) reminding the public that heavy rains are expected and cautioning everyone not to touch downed power lines. Council Member Gardner reported that the results of the Corona del Mar Parking Study will be presented on February 26, 2014, in the Community Room at 6:00 p.m. Additionally, she announced that the Lower Castaways Ad -Hoc Committee will meet on March 3, 2014, at 4:00 p.m. in the Crystal Cove Meeting Room to discuss opening it up to more activities, as well as design concepts. Council Member Petros announced that a Bicycle Master Plan Oversight Committee meeting will be held on March 3, 2014, in the Community Room, at 5:00 p.m. He added that recommendations for a Bicycle Master Plan will be discussed and invited those interested to attend. Mayor Pro Tem Selich commented on the Sculpture in the Park program and reported that the Civic Center architect has prepared a Master Plan. He noted that the Arts Commission indicated that they received 52 submittals as of last week. On March 28, 2014, the panel of three arts professionals and three Arts Commissioners will select 10 sculptures with three or four alternates to present to the Arts Commission and subsequently to Council for ratification. He added that the installation date has been postponed to early in the fall. Council Member Gardner commented positively on the number and quality of entries. Mayor Pro Tern Selich announced that the General Plan/Local Coastal Program Implementation Committee meeting originally scheduled for February 26, 2014, has been cancelled due to lack of appearance by Coastal Commission staff. Mayor Hill announced that the sculpture entry deadline is February 28, 2014, at 11:59 p.m. Additionally, he reported that the Orange County Sanitation District (OCSD) announced the beginning of night work on Newport Boulevard beginning February 26, 2014, from 7:00 p.m. to 7:00 a.m. through March 5, 2014 as part of the Balboa Trunk Sewer Rehabilitation Project. Questions or concerns can be directed to the OCSD at 714- 679 -2088 or constructionhotline (aa),OCSD.com. Additionally, he announced one vacancy on the Water Quality /Coastal Tidelands Committee and that applications can be accessed on the City's website at www.newoortbeach.ca.eov, can be obtained at the City Clerk's Office or by calling the City Clerk's Office. The deadline for filing an application is March 17, 2014, at 4:00 p.m. Mayor Hill also reported attending the opening of the first Pickleball tournament where the Western Regional Head of Pickleball attended. X. PUBLIC COMMENTS ON CONSENT CALENDAR Volume 61 - Page 475 15 City of Newport Beach City Council Regular Meeting February 25, 2014 Jim Mahoney spoke regarding Item 10 (Water Taxi and Multiple Vessel Mooring System) and Mayor Hill noted that the Item has been pulled and that public comment will be received when it is discussed. XI. CONSENT CALENDAR A. READING OF MINUTES AND ORDINANCES 1. Minutes for the February 11, 2014 Regular Meeting. Waive reading of subject minutes, approve as amended, and order filed. 2. Reading of Ordinances. Waive reading in full of all ordinances under consideration, and direct City Clerk to read by title only. C. ORDINANCE(S) FOR ADOPTION 4. Back Bay Landing, Second Reading, 300 East Coast Highway (PA2011 -216). a. Conduct a second reading and adopt Ordinance No. 2014 -3 (Staff Report Attachment No. CC1), An Ordinance of the City Council of the City of Newport Beach Approving Code Amendment No. CA2013 -009 for the Approximately 31 Acre Planned Community Known as Back Bay Landing Located at 300 East Coast Highway (PA2011 -216), finding that all significant environmental concerns for the proposed project have been addressed in a previously certified Environmental Impact Report No. ER2012 -003 (SCH No. 2012101003) and approving Code Amendment No. CA2013 -009 to expand the boundaries of Planned Community District PC -9; and b. Conduct second reading and adopt Ordinance No 2014 -4 (Staff Report Attachment No. CC2), An Ordinance of the City Council of the City of Newport Beach Approving Planned Community Plan Adoption No. PC2011 -001 for the Approximately 30 Acre Planned Community Known as Back Bay Landing Located at 300 East Coast Highway (PA2011 -216), finding that all significant environmental concerns for the proposed project have been addressed in a previously certified Environmental Impact Report No. ER2012 -003 (SCH No. 2012101003) and approving Planned Community Development Plan No. PC2011 -001 to allow for the classification of land within the PC -9 boundaries and establishment of development standards, design guidelines, and procedures for implementation of future project and long -term operation of the site. E. CONTRACTS AND AGREEMENTS 6. Central Balboa & Newport Heights Alley and Street Replacement - Completion and Acceptance of Contract No. 4945 (CAP12 -0033) (C- 4945). 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 this Council acceptance. Council Member Henn recused himself from this item because he lives within 500 -feet of the subject property. Volume 61 - Page 476 16 City of Newport Beach City Council Regular Meeting February 25, 2014 7. Amendment to Professional Services Agreement with Urban Crossroads for Land Use Element Amendment Traffic Impact Analysis (C- 3524). Approve Amendment No. 2 to PSA with Urban Crossroads to provide additional traffic analysis related to the Land Use Element (LUE) Amendment at a not -to- exceed cost of $99,800 and authorize the Mayor and City Clerk to execute Amendment No. 2. Council Member Henn recused himself from this item due to a possible conflict of interest since he has a business relationship with a business in the Via Lido Plaza. 8. Amendment to Professional Services Agreement with Anderson Penna Partners, Inc. for Santa Ana Heights Pavement Rehabilitation Project - Contract No. 4707 (CAP11 -0022) (C- 4707). Approve Amendment No. 2 to PSA with Anderson Penna Partners, Inc. to provide additional inspection services related to the Santa Ana Heights Pavement Rehabilitation project at a not -to- exceed cost of $60,000, and authorize the Mayor and City Clerk to execute Amendment No. 2. 9. Big Canyon Diversion -Award of Contract No. 5556 (CAP 14 -0029) (C- 5556). a. Approve the project drawings and specifications; b. Award Contract No. 5556 to Bali Construction, for the total bid amount of $119,323.58, and authorize the Mayor and the City Clerk to execute the contract; c. Establish a contingency of $12,000.00 (approximately 10 %) to cover the cost of unforeseen work; and d. Approve Budget Amendment No. 14BA -031 appropriating $38,000 from the unappropriated Wastewater Enterprise Fund to 7541- C7002004. Motion by Mayor Pro Tem Selich, seconded by Council Member Curry, to approve the Consent Calendar, except the items removed (3, 5 and 10); and noting the recusals by Council Member Henn on Items 6 and 7. The motion carried by the following roll call vote: Ayes: Council Member Gardner, Council Member Petros, Council Member Curry, Council Member Henn, Council Member Daigle, Mayor Pro Tem Selich, Mayor Hill XII. ITEMS REMOVED FROM THE CONSENT CALENDAR 3,5 and 10 3. Introduction of Ordinance No. 2014 -5 Amending Newport Beach Municipal Code Chapter 10.32 Regarding Sound Amplification Permits. City Attorney Harp provided a staff report and addressed allowing denial of a sound - amplification permit if the application does not meet the Code requirements and if the activity described in the application violates the Code. He added that staff proposed an amendment to the sound - amplification permit to allow denial based on past conduct. He reported that, when the ordinance was initially drafted, it was a mandated denial if there was a revocation of the permit in the last 18 months or a citation was issued; however, staff is proposing to make it permissive instead of mandatory. In response to Council Member Petros' question, City Attorney Harp reported that the appeals would go before the Finance Director and then to the City Manager. Volume 61 - Page 477 17 City of Newport Beach City Council Regular Meeting February 25, 2014 Jim Mosher referenced his written comments and expressed concerns relative to having the matter be appealed to the Finance Director, believing it should go before the Community Development Department. He also asked about the origin of this request and took issue with staff writing new laws for the City when Council did not give direction to do so. Council Member Henn reported receiving several complaints from residents in his District and indicated that he discussed them with staff who returned with a reasonable recommendation to address the matter. In response to Council Member Daigle's question regarding having the Finance Director decide the appropriateness of sound, City Manager Kiff reported that it has been in the Code for a long time and that the Finance Director typically plays a regulatory role. Motion by Council Member Henn, seconded by Mayor Pro Tern Selich to introduce Ordinance No. 2014 -5, An Ordinance of the City Council of the City of Newport Beach Amending Chapter 10.32 of the Newport Beach Municipal Code Regarding Sound Amplification Permits, and pass it to a second reading on March 11, 2014. The motion carried by the following roll call vote: Ayes: Council Member Gardner, Council Member Petros, Council Member Curry, Council Member Henn, Council Member Daigle, Mayor Pro Tom Selich, Mayor Hill 5. Balboa Pier Parking Rate Modification (to Comply with a Recently- Issued Coastal Development Permit to install automated pay stations). Council Member Gardner commented on the City Manager's ability to decrease or increase the rate by no more than 25 %, not to exceed 50 %, and asked whether staff has spoken with Coastal Commission staff regarding the matter. City Manager Kiff responded affirmatively. Regarding CEQA issues in the Resolution and alternative language, City Attorney Harp reported that the matter relies on multiple exemptions, not just the first exemption. In response to Council Member Gardner's question on the distinction between Balboa Pier and Corona del Mar State Beach, City Manager Kill reported that staff is following up the same procedure with the Coastal Commission and reported on an upcoming Coastal Commission agenda item regarding Corona del Mar. He stated that, pending their approval, staff will return to Council to report what they approve. Mayor Pro Tern Selich recommended not adopting the Resolution and expressed concerns with Condition 5.3 relative to regulating the time that people use the beach. He believed that this sets precedent and the City will be implicitly agreeing to relinquishing its ability to restrict hours of use. He suggested waiting until the Local Coastal Plan (LCP) is adopted so the City can issue permits. He stated the need to regroup and take another look at both the Balboa Pier parking lot and the Corona del Mar parking lot. Regarding Condition 5.3, City Attorney Harp noted that the Coastal Commission imposed a condition that no additional signage is allowed. City Manager Kiff added that the sign program was for the proposed new parking pay stations and had nothing to do with curfews or closures. He agreed that the Condition may have inconsistencies. Jim Mosher reported that, when the matter was before the Coastal Commission, their staff indicated that beaches were closed from 10:00 p.m, to 6:00 a.m, and questioning whether the City had applied for a Coastal Development Permit (CDP) for that regulation. He agreed that Volume 61 - Page 478 18 City of Newport Beach City Council Regular Meeting February 25, 2014 Coastal Commission staff expressed concerns regarding allowing access to the water at all times. He commented positively on the current system at Balboa Pier. Mayor Pro Tem Selich emphasized that, when a CDP is accepted, it gets recorded against the land and is not something that should be taken lightly. Council Member Henn indicated that he supports taking additional time to study the matter, but stated that the Condition in question does not state that the City shall have a sign that the beach is open at all times. Motion by Council Member Gardner, seconded by Council Member Curry, to continue the item to the March 11, 2014 City Council meeting. The motion carried by the following roll call vote: Ayes: Council Member Gardner, Council Member Petros, Council Member Curry, Council Member Henn, Council Member Daigle, Mayor Pro Tem Selich, Mayor Hill 10. Water Taxi and Multiple Vessel Mooring System. Mayor Pro Tem Selich indicated that he wants to make sure that the City is not only looking at electric power water taxis, but also different types of propulsion. Additionally, he suggested that the Harbor Commission conduct extensive outreach when considering the various Multiple Vessel Mooring Systems. Council Member Henn reported that an extensive study on this issue was done by the Economic Development Committee about four years ago and hoped that it will be beneficial to the Harbor Commission. Council Member Curry agreed that this is an initiative that needs consideration in terms of technology, costs, and a service model. He noted that water -board transportation is one of the most expensive modes of transportation and emphasized the need to be mindful of financial obligations and implications. Eric Langenbach commented on his experience with water taxis and wondered if this will be a private venture or a publicly - funded one. Mayor Hill reported that the matter will be addressed by the Harbor Commission with a recommendation to Council. Duncan McIntosh, Chair of the Harbor Commission, stated that the water taxi is a point -to- point shuttle service using a number of water crafts. If it is to be a tour service, it will compete against existing water services in the Harbor and will be more expensive than the water taxi. He requested clear direction from Council. Shanda Lear, Lear Electric Boats, commended Council for considering the Item and commented on the possibility of a water bus, noting that the technology has improved. She added that, if properly advertised, it could attract more people to enjoy the water. Mayor Hill noted that this is one of three initiatives that he hopes to work on during his tenure as Mayor. He added that the three items have been studied individually, and that the Harbor Commission has spent hours studying this topic. He stated that he would like to bring the various studies together into one comprehensive study and will charge the Harbor Commission to evaluate the opportunities with the goal of developing a pilot project that will free the Harbor of space taken up by the existing system and compact it into a floating dock concept system with the services of water and power added to the floating docks. He added that this Volume 61 - Page 479 19 City of Newport Beach City Council Regular Meeting February 25, 2014 would allow for more of the Harbor to be used for recreation and less for boat storage. He acknowledged that it will require more boats and capital to start, and indicated that the revenue generated could go to a funding source that would subsidize the operation; however, the people to work it out is the Harbor Commissioners. Mayor Hill believed the concept would be to have a water bus on a dedicated route during the high season, and serve as a water taxi during the low season. City Manager Kiff received confirmation that there would be a preference for electric, green vessels, but indicated that other forms of power will also be considered.. Motion by Mayor Pro Tem Selich, seconded by Council Member Henn, to a) direct the Harbor Commission to form an Ad -Hoc Committee to evaluate a pilot program for a possible green, electric water taxi service within the Harbor, and then have the full Harbor Commission review and make a recommendation to the Council on the merits for implementation of such a service; and b) direct the Harbor Commission to form an Ad -Hoc Committee to evaluate a pilot Multiple Vessel Mooring System including water and power, and then have the full Harbor Commission review and make a recommendation to the Council on the merits for implementation of such a mooring system. The motion carried by the following roll call vote Ayes: Council Member Gardner, Council Member Petros, Council Member Curry, Council Member Henn, Council Member Daigle, Mayor Pro Tem Selich, Mayor Hill X1II. PUBLIC COMMENTS ON NON - AGENDA ITEMS Jim Mosher asked about the City's plans for its West Newport facilities, noting that at a previous meeting, staff committed to bringing back proposals in February. He pointed out that, on February 11, there was a Closed Session Item pertaining to the sale or lease of two City -owned properties and that one of the private parties issued a press release showing the entire West Newport Community Center rebranded as the Pacifica Christian High School. He believed that it is imprudent to announce plans for the property until there is a publicly- vetted plan. He addressed another case in which someone seems to think they have a secret commitment from Council and referenced a newspaper article which quoted Gary Sherwin (Newport Beach and Company) saying that he expects, by mid- March, to be operating Newport Beach TV (NBTV). He expressed opposition to this idea, adding that Newport Beach and Company has no expertise in television operations. Roy Englebrecht, Parks, Beaches and Recreation Commissioner and 2014 candidate for Council District 4, discussed a previous Council action to remove all fire rings. He reported that the Coastal Commission weighed in on the matter and passed it on to the California Air Quality Management District (AQMD), which subsequently voted to institute Rule 444. He indicated that he personally measured the three fire rings at Big Corona that are closest to the shore and believed that they are 703 feet, 6 inches from the nearest residence, making them exempt From AQMD Rule 444. He asked that Council consider moving six additional fire rings so that, this summer, there will be nine functional fire rings at Big Corona. Ken Goen expressed opposition to Duffy docks and utilities on the docks. Volume 61 - Page 480 20 City of Newport Beach City Council Regular Meeting February 25, 2014 XIV. ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES Council Member Henn reported that the Balboa Village Advisory Committee (BVAC) met and considered finalizing its 2014 Work Plan and discussed the recommendations from the Urban Land Institute (ULI) report that could be incorporated into the Work Plan. XV. PUBLIC HEARINGS 11. Appeal of the Planning Commission's Decision to Deny Variance No. VA2013 -002 for 417 and 419 East Balboa Boulevard (PA2013 -086). City Attorney Harp reported that the applicant has raised some issues relative to small structures and whether the City's statutes that deal with non - conforming uses in the application of a 50% rule is appropriate in all circumstances. He added that one issue that was discussed before hearing the appeal is whether or not Council would like to revisit how non- conforming structures are dealt with in the Newport Beach Municipal Code. He reported that the applicant has agreed to stay their appeal if Council will be revisiting the issue of non- conforming structures. Mayor Hill noted that this appears to be a real issue and wondered whether, in lieu of dealing with variances, Council wishes to address the process to make determinations and resolve the problem on a broader scale rather than on a case -by -case basis. He added that the applicant has agreed that this would be a logical process to utilize. Mayor Pro Tern Selich commented on his experience participating in re- writing two Zoning Codes and stressed that it will not be easy. He believed that the current Code attempts to come up with the proper balance related to a threshold where a structure needs to be changed and not be allowed to continue as a non - conforming structure. Council Member Henn believed that some allowance should be provided for instances in which a structure becomes so small that the current Code will provide an inequitable result. He agreed that it would be worthwhile to look into the matter, acknowledging that Council may not come up with a perfect answer. Mayor Hill opened the public hearing. Gary Mobely, Attorney for the applicant, indicated agreement with staying the appeal while Council considers the matter, even though the process may take several months. W. R. Dildine reported that, at 313 East Balboa Boulevard, is the twin to the subject building. He reported that it is one of the better maintained buildings on the block and commented on a notice of abatement served on the owner, which has been extended. He added that the owner currently has two commercial tenants and believed the two buildings are historical buildings. He noted that the Tax Assessor's maps assume that the lots are rectangular. He reported that he had his lots surveyed and that they are non - conforming and noted significant problems in the area. He thanked Council for looking into the matter. George Hajjar, owner of 414 East Ocean Front, believed that someone will always ask for a variance and that it is not fair to keep changing the rules, noting that many people previously appeared before Council to abide by those rules. He pointed out that reconsidering non- conforming uses is a long process, the subject structure has served its purpose, the applicant knew the conditions prior to purchasing the property, and the structure does not blend in with the rest of the development. Volume 61 - Page 481 21 City of Newport Beach City Council Regular Meeting February 25, 2014 Hearing no further testimony, Mayor Hill closed the public hearing. In response to Council questions„ City Attorney Harp reported that the matter will come before Council as a separate item to consider a potential amendment to the non - conforming structure Code section to determine if the 50% rule is appropriate on a global scale. Community Development Director Brandt clarified that the focus will be to consider non - conforming small structures. Council Member Daigle requested and received confirmation that the matter will not be isolated to the subject property, but a lot of different properties will be considered. Motion by Council Member Henn, seconded by Mayor Pro Tem Selich, to continue the item indefinitely. The motion carried by the following roll call vote: Ayes: Council Member Gardner, Council Member Petros, Council Member Curry, Council Member Henn, Council Member Daigle, Mayor Pro Tern Selich, Mayor Hill 12. Uptown Newport Planned Community, Affordable Housing Implementation Plan (AHIP) Amendment (PA2014 -011), Located at 4311 -4321 Jamboree Road. Principal Planner Campbell provided an overview of the proposal, including background, location, phases of construction, density bonus, affordable housing, and the Affordable Housing Implementation Plan (AHIP) which the applicant is seeking to amend at this time to construct the affordable portion in Phase 1. He reported that, in order to accommodate their request, an amendment would be in order. He noted that staff has no objections. In response to Council Member Petros' questions regarding plans submitted for Phase 1, Principal Planner Campbell reported that there are no plans at this time, but there are Conceptual Site Development Review Plans that the Planning Commission reviewed which break up 12 acres of the project site into various building pads. He explained that the developer is looking to build two buildings along Jamboree and that the affordable housing units would be in those structures. He added that the project will be implemented later in the summer. Mayor Hill opened the public hearing. Brian Rupp, The Shopoff Group, reported that, since the project's original approval by Council, they have formulated their specific business plan which will include the development of two apartment projects along Jamboree and for -sale housing around the Phase 1 park. He noted that, when Council approved the project, they were limited regarding the number of units that could be developed in Phase 1 and that the business plan now includes the development of those apartment units which will include 97 affordable units. He explained that the amendment would allow them to develop those units in Phase 1 rather than staggering them between Phases 1 and 2. Hearing no further testimony, Mayor Hill closed the public hearing. Motion by Council Member Gardner, seconded by Mayor Pro Tern Selich, to adopt Resolution No. 2014 -18, A Resolution of the City Council of the City of Newport Beach Approving an Amendment of the Affordable Housing Implementation Plan No. AH2O12 -001 for the Uptown Newport Planned Community Located at 4311 -4321 Jamboree Road (PA2014 -011), finding that all significant environmental concerns for the proposed project Volume 61 - Page 482 22 City of Newport Beach City Council Regular Meeting February 25, 2014 have been addressed in a previously certified Environmental Impact Report No. ER2012- 001 (SCH No. 2010051094) and approving an amendment of the Uptown Newport Affordable Housing Implementation Plan No. AH2012 -001. The motion carried by the following roll call vote: Ayes: Council Member Gardner, Council Member Petros, Council Member Curry, Council Member Henn, Council Member Daigle, Mayor Pro Tem Selich, Mayor Hill 13. Newport Harbor Yacht Club Located at 720 West Bay Avenue (PA2012 -091). Community Development Director Brandt utilized a PowerPoint presentation and discussed the efforts by the applicant team and City staff to look at a comprehensive renovation of the property. She described the proposal and addressed location, relevant applications, considerations, renderings, current Harbor views, and proposed Harbor views. She noted that the proposed heights present no negative impacts to public views. In response to Council Member Gardner's questions, Community Development Director Brandt reported that the club currently has 900 members and that the operational plan does not include, as of this date, increasing the membership. She noted that there is no Condition of Approval limiting membership and that Council could consider adding one. She indicated that the Parking Management Plan is based on the square footage of the building and assembly area. She reported that there is one Condition of Approval that limits the use of outdoor paging systems and that, if they want outdoor sound amplification, they will need to go through the permit process. She stated that the parking study provided background information in terms of available parking in the neighborhood and that the analysis is based on off-street parking dedicated to use by the Yacht Club which resulted in a 95 space deficiency. She presented conclusions of the parking study relative to the day -to -day operations of the facility. Council Member Henn noted he has been at the facility many times and that it is rare for the parking lot to be full. He indicated that he is not concerned about growing the membership and did not see a need to include a provision limiting membership. Mayor Hill opened the public hearing. Hearing no further testimony, Mayor Hill closed the public hearing. Mayor Pro Tem Selich stated that this will be a terrific addition to the Harbor and commented positively on the proposed architecture. Motion by Council Member Petros, seconded by Mayor Pro Tem Selich, to a) find that the project is categorically exempt from the California Environmental Quality Act ( "CEQA ") pursuant to Section 15302 of the CEQA Guidelines; b) adopt Resolution No. 2014 -19, A Resolution of the City Council of the City of Newport Beach Approving General Plan Amendment No. GP2012 -003 and Coastal Land Use Plan Amendment No. 2012 -003 for Land Use Designation Changes and an Increase in the Development Limit for the Newport Harbor Yacht Club Property Located at 720 West Bay Avenue (PA2012 -091); c) introduce Ordinance No. 2014 -6, An Ordinance of the City Council of the City of Newport Beach Approving Zoning Code Amendment No. CA 2012 -006 for Zoning Designation Changes and an Increase in the Development Limit for the Newport Harbor Yacht Club Property Located at 720 West Bay Avenue (PA2012 -091), and pass to second reading on March 11, 2014; and d) adopt Resolution No. 2014 -20, A Resolution of the City Council of the City of Newport Beach Approving Minor Use Permit No. UP2012 -016 and Planned Volume 61 - Page 483 23 City of Newport Beach City Council Regular Meeting February 25, 2014 Development Permit No. PL2012 -002 for a Replacement Yacht Club Facility for the Properties Located at 720 West Bay Avenue and Rescinding Variance No. VA0863, Use Permit No. UP0652, Use Permit No. UP1517, and Use Permit No. UP3645 for the Newport Harbor Yacht Club (PA2012 -091). XYL CURRENT BUSINESS 14. Mid -Year Budget Amendments: Update Certain Revenue Estimates, Increase Certain Expenditure Appropriations, and Authorize the City Manager to Negotiate and Enter into an Agreement with Motorola for the Acquisition of a Marine Safety Dispatch System (C- 5752). Council Member Daigle recused herself from the item since she owns property within 500- feet of the subject property. Council Member Gardner referenced the 2013/2014 Mid -Year Budget Amendment Summary and asked whether the Initial Start to Refuse Contract will require additional funds. City Manager Kill reported that it does not, but rather is programmed into the actual contract. Council Member Gardner commented on the issue of reserves and asked regarding the possibility of considering reinvesting them. She added that it has been discussed, but that the City has no philosophy in relation to the matter and in the future, would like Council to have a full discussion of the topic. City Manager Kiff reported that the matter will go before the Finance Committee first and be built into the adoption of the budget. In response to Mayor Pro Tern Selich's question, City Manager Mff reported that the One -Time Facilities Maintenance includes a series of smaller projects as requested by Department Directors and involves maintenance in buildings, and the Additional Contribution to Facilities Maintenance is not an expenditure of funds but involves the establishment of reserves for big maintenance projects. He added that, as staff prepares the upcoming budget, consideration will be given to items identified as deferred maintenance. In response to Mayor Pro Tom Selich's questions, City Manager Ki£f reported that the Locker Room in the Marian Bergeson Aquatic Center has been carried over for approximately 3 years with the School District contributing two - thirds and they are ready to begin, having sent the City an invoice for one -third of the costs. Regarding the Reforestation Project, he reported that this would be added to what is already allocated in this year's budget to get a jump start of the coming year's budget and that discussions with staff will include expediting the process with the Parks, Beaches and Recreation Commission. Jim Mosher indicated that he thought this matter would have been reviewed by the Finance Committee before presenting it to Council. He noted that the Item's recommendation includes the creation of a new Facilities Maintenance Division with the Municipal Operations Department, but believed that Council sets up Departments and Divisions, and the City Manager only populates them with good employees and sees that the system functions. He reported that the City Charter empowers Council, by ordinance, to create City Departments and Divisions. However, the current item is not an ordinance, but rather an action. City Manager Ki£f noted that this is the creation of a cost center, not a Department or Division. Motion by Council Member Petros, seconded by Mayor Pro Tem Selich, to a) approve Budget Amendment No. 14BA -032 that appropriates $12 million of General Fund unassigned fund balance, $1.1 million from General Fund increased revenue estimates, and $1.2 million from other funds, including Tidelands Fund, IT Strategic Fund, and Lifeguard Headquarters Volume 61 - Page 484 24 City of Newport Beach City Council Regular Meeting February 25, 2014 Fund; b) approve Budget Amendment No. 14BA -033 that records an increase to General Fund revenue estimates of $2,821,196; c) approve Budget Amendment No. 14BA -034 that creates a new Facilities Maintenance Division in the Municipal Operations Department (MOD). The budget amendment transfers current facilities maintenance appropriations to the new division; and d) authorize the City Manager to negotiate and enter into a Communications Systems Agreement with Motorola Solutions (C- 5752), Inc. for a Marine Safety Dispatch System (800M Hz) to be installed at Lifeguard Headquarters with a not -to- exceed cost of $230,269.81. The motion carried by the following roll call vote: Ayes: Council Member Gardner, Council Member Petros, Council Member Curry, Council Member Henn, Mayor Pro Tem Selich, Mayor Hill Recused: Council Member Daigle 15. Priorities for 2014. City Manager Kiff reported that the staff report included a spreadsheet of items suggested by Council through goal- setting and other direction. Council Member Henn recused himself from hearing the Re -Use of the Old City Hall Site item. Mayor Hill recused himself from hearing the Mariner's Mile — planning zoning and circulation changes item and the Balboa Boulevard from PCH to 22nd item since he owns property within 500 -feet of both sites. Additionally, Mayor Hill recused himself from hearing the OCTA's PCH Corridor Study/Master Plan/Pedestrian Bridges item and the Flashing Crosswalks, especially on Balboa Boulevard item as they are undefined areas and he may own property within 500 -feet. Council Member Petros encouraged staff to move on the Mariner's Mile Citizen Advisory Panel (CAP). Bernie Svalstad, Chair of the Corona del Mar Business Improvement District, commented on the item relative to MacArthur Boulevard and Pack Coast Highway, noting that he requested $500,000 in the budget for that project. He hoped that the matter would be check marked. Motion by Council Member Gardner, seconded by Mayor Pro Tem Selich, to approve the list of priorities for 2014, noting the recusals by Council Member Henn and Mayor Hill. The motion carried by the following roll call vote: Ayes: Council Member Gardner, Council Member Petros, Council Member Curry, Council Member Henn, Council Member Daigle, Mayor Pro Tem Selich, Mayor Hill 16. Claims Settlement - C.W. Driver, Bohlin Cywinski Jackson, and City (C- 5744). City Manager Kiff reported that the City has a substitute agreement, which was provided to Council and the public counter in the vestibule, that points to C.W. Driver's assigning its rights to file further claims against the architect, Bohlin Cywinski Jackson (BCJ), to the City, including its subcontractors. C.W. Driver has indicated they do not have the capacity to do that and that staff has proposed removing this. In response to Council Member Gardner's question, City Attorney Harp confirmed that the City could pursue the amount of what the City would contribute to the settlement and added that Volume 61 - Page 485 25 City of Newport Beach City Council Regular Meeting February 25, 2014 the amount that is paid pursuant to the agreement would be the amount that could potentially be recovered if there was subsequent action against BCJ. Jim Mosher discussed a previous Council practice in which it reviewed all the claims against the City, but that it has not been the practice for 20 years. He believed there is a belated effort towards transparency and commented on claims submitted by C.W. Driver totaling over $9 million, but the amount shown in the details totals $8.2 million. He asked if all of the claims are listed and indicated he does not know what the claims were for. He expressed concern with the Ad Hoc Building Committee since they have never reported to Council as to what is going on with the contract and also commented on stop - payment notices. He hoped that Council will ask for clarity and additional details. Council Member Daigle commented on guarantees offered by C.W. Driver and expressed concern that they did not meet their guarantee. She indicated she will not support the matter and that C.W. Driver should be responsible for the entire claim amount. Council Member Gardner agreed, but noted the City's potential liabilities. Mayor Hill emphasized that these are claims that relate to change in scope and are not a C.W. Driver responsibility. Motion by Council Member Gardner, seconded by Mayor Pro Tem Selich, to approve the amended Settlement Agreement and General Release, in substantially the same form as the staff report attachment, with C.W. Driver, in the amount of $2,399,430 (net new cost to City of $2.19M). The motion carried by the following roll call vote: Ayes: Council Member Gardner, Council Member Petros, Council Member Curry, Council Member Henn, Mayor Pro Tom Selich, Mayor Hill Nays: Council Member Daigle XVII. MOTION FOR RECONSIDERATION - None XVIII. ADJOURNMENT - 8:45 p.m. The agenda for the Regular Meeting was posted on the City's website, on the City Hall Electronic Bulletin Board located in the entrance of the City Council Chambers at 100 Civic Center Drive, and in the Meeting Agenda Binder located in the entrance of the City Council Chambers at 100 Civic Center Drive on February 20, 2014, at 4:00 p.m. City Clerk Recording Secretary Mayor Volume 61 - Page 486 26