HomeMy WebLinkAbout01 - MinutesJune 24, 2014
Agenda Item No. 1.
CITY OF NEWPORT BEACH
City Council Minutes
Study Session and Regular Meeting
June 10, 2014
I. ROLL CALL — 4:30 p.m.
Present: Council Member Gardner, Council Member Petros, Council Member Henn, Council Member
Daigle, Mayor Pro Tem Selich, Mayor Hill
Excused: Council Member Curry (arrived at 6:16 p.m.)
II.
SS1. Clarification of Items on the Consent Calendar
Council Member Gardner noted a typographical error in Item 5 (Changes to Council Policies F -2 and B-
2) regarding the target balance of the contingency reserve. Regarding Item 6 (Resolution Authorizing
the Temporary Closure of Selected Streets and Parking Lots for the July 4zh Holiday Period), she stated
that just because a street or parking lot is listed, it does not necessarily mean that it will be closed. She
added that some parking lots may be closed because they will be used as staging areas.
SS2. Lido Marina Village - Proposed Marina Plans
Council Member Henn recused himself from this item since he has a business relationship
with a business in Lido Marina Plaza.
Harbor Resources Manager Miller introduced a representative from CAA Planning, provided a
PowerPoint presentation on the Reconstruction Project, requested direction, and stated that he will be
providing options for Council to consider. Upon Council's direction, the matter will go through the
Harbor Commission process.
Shawna Schaffner, Chief Executive Officer of CAA Planning and representing DJM Capital, provided a
PowerPoint presentation and addressed the project site, the project status, existing conditions, marina
layout, proposed reconstruction, existing and proposed boat lengths, site plan, details of Dock A, Dock B
and Dock C, the conceptual design and entitlement of a new public dock, new public access boardwalk,
future boardwalk connection, and approvals being sought from the City.
Council Member Petros inquired on construction of the existing marina wall in 1955 and the proposed
new structure over the existing bulkhead. Ms. Schaffner noted the proposal for implementing
significant placement of tie -backs into the seawall in order to provide structural improvements to the
wall without having to replace it. Harbor Resources Manager Miller confirmed that the review of the
plan would be handled through the City's building permit process and stated he will ensure thorough
review, including the assumption of liability.
Harbor Resources Manager Miller continued the presentation and discussed what will be brought before
the Harbor Commission since their approval is required for the extension beyond the pierhead line and
for the cantilevered deck, and reported that apart from those two matters needing approval, the project
meets the requirements of the Harbor Design Standards. Additionally, he addressed an alternate
marina design, complications with that design, and steps needed to overcome them. He provided four
possible options going forward.
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Council Member Gardner addressed Option No. 2, noting that unless a concept is in the initial design,
pursuing additional design options do not work well after the design approval. She noted the need to be
careful about add -ons.
In response to Council Member Daigle's question about the purpose of exceeding project lines, Harbor
Resources Manager Miller reported that the conceptual design developed earlier for that area was to
build an iconic - looking, visitor - serving dock for larger boats. He believed that this is an opportunity to
think big. He continued presenting options going forward, noting the need for rehabilitation. He
addressed the project, pierhead and bulkhead lines, noting that they are Federally- established and
stated that the pierhead and bulkhead lines could be changed, with little difficult at the local level with
the U.S. Army Corps of Engineers' help. However, the project line denotes where the Federal
Government and the Corps of Engineers are responsible for dredging. He added that changing the
project line requires Congressional approval and how that gets done is to be determined.
Council Member Gardner commented on each of the options and stated her preference for Option No. 1,
allowing the plan to proceed for Harbor Commission review.
Mayor Pro Tern Selich stated that the applicant has done a good job with the design in keeping within
the constraints of the project line, but agreed that this is an opportunity to do something innovative and
creative in the Harbor. He spoke in favor of Option No. 4, approving the project but allowing for the
introduction of other design ideas and finding out what is entailed in going outside of the project line.
He commented positively regarding connecting the public dock to the Lido Marina Village and making
sure that a connection is made to the other side of the marina. Additionally, he commented on the need
for more information and additional time to consider other design options.
Discussion ensued relative to the developer funding the project and the City establishing criteria on
how to build their project. It was noted that zoning establishes criteria for what people can do with
their land, that this issue pertains to Tidelands, and that the community spent a year developing a
Master Plan which looked at the rejuvenating of the entire Lido Marina Village area and developing a
world -class Harbor. Mayor Hill noted that a more exciting Harbor would draw visitors and revenue, the
plan has to work economically, and the City has the right to decide what it wants to do with it.
In response to Council Member Daigle's question regarding when the economic input comes into the
process, Harbor Resources Manager Miller reported that currently, staff is implementing leases with all
of the commercial marinas in the Harbor but was unsure relative to the Lido Marina Village.
Harbor Resources Manager Miller addressed public access at the Elks Lodge, connection to the public
dock, commented on the proposed public dock at Central Avenue, the proposed sewage pump -out
station, and noted the availability of grants. He addressed challenges in maintaining them and
questioned having one on the public dock if the intention is to have a destination -type dock.
In response to Council Member Petros' question about the project line and whether the discussion would
threaten the ability to maintain existing docks through another agency, Harbor Resources Manager
Miller stated that it is a possibility but stated that, by not extending any further out than the existing
docks, the City and applicant would be allowed to do so.
Council Member Petros commented on the possibility of getting an answer from the Federal
Government regarding the project line, noting that it will most likely take more than six months. He
indicated that Option No. 4 is unrealistic unless it is agreed that the project will take several years. He
believed that more space is being taken up while not providing additional benefits to the yachting
public, commented on other landside, world -class facilities, and believed that there is too much
uncertainty with this concept. He agreed with Council Member Gardner's comments.
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Mayor Hill commented on challenges over the years and the goals of the Master Plan. He addressed the
importance of connectivity, noted that everyone wants to see the project move forward but stated he
wants to ensure that nothing has been missed. He added that given the constraints of the existing
parameters, the plan is a good plan but wondered if it is the best plan that the City could have. He
suggested going through the Harbor Commission process and the possibility of the City finding a
marine designer for the project.
Council Member Gardner suggested having Council consider the matter formally in order to develop a
clear decision on which way to proceed.
In response to Council Member Daigle's question regarding staffs recommendations, Harbor Resources
Manager Miller reported that he believes there is room in the turning basin to handle an "out of the
box" concept from a space perspective and stressed the need for help from the right people in order to
make a good decision.
Council Member Daigle stated that the City has a lobbyist that could help figure out regulatory aspects
of the project and asked for staffs input regarding soliciting other ideas. Harbor Resources Manager
Miller stated that getting more opinions is a good idea, but noted the need to be respectful to the
applicant and the work they have undergone. Council Member Daigle reported that allowing for more
information and more time would be to the City's benefit.
Mayor Pro Tern Selich stated that he does not expect to get an answer from the Federal Government in
six months. However, he expects to have more knowledge about the process. He commented on a
Federal channel on the east coast where an easement from the Corps of Engineers is sufficient to
change the project line and wondered if that would be applicable to this project. He addressed the need
to ensure that the best plan is developed since whatever is done will be long term.
City Manager Kiff stated that it would be beneficial to place the item on a regular meeting agenda in
order for Council to take a formal vote with direction and with Council Member Curry in attendance to
provide input. He assured Council that staff will bring the issue back to Council as soon as possible.
Shawna Schaffner stated the importance of Council understanding that CAA Planning did not shirk its
responsibilities in terms of planning efforts. She reported that Alternative 513 was reviewed in detail
and read portions of a URS letter from the PowerPoint presentation which acknowledges that
Alternative 5B is not an engineering drawing but appears that the proposed docks extend
approximately 200 feet beyond the current bulkhead and pierhead lines and approximately 100 feet at
the south end. It also states that an intrusion would not be allowed under the current City and Federal
policy, and URS estimates an eight -to- twelve year process requiring changes that only the Federal
Government could implement with no guarantee of success. Further, the letter states that this has not
taken into account the California Coastal Commission review of such a project which would present
additional challenges. Ms. Schaffner added that her organization believes that this is not a plan that
could be implemented and does not have the public benefits that the Coastal Commission likes to see.
Lindsay Parton, DJM Capital, new owners of Lido Marina Village, indicated that they want to be a
cooperative owner. He stated that their focus is not only on the Marina, but also on the impact that it
has on retail and the entire Village. He added that every tenant wants to know what is happening with
the Marina and that the plan they are presenting is the best solution for something that is feasible
within a reasonable time. He added that the public has provided input and really wants the Marina to
be fixed now rather than later. He noted difficulties in fixing the retail component without fixing the
Marina and stated his company is not interested in something that has to go through the Federal
process with a long delay. However, if Council would be more comfortable with obtaining information
from other consultants, they would be happy to accommodate that.
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SS3. Multiple Vessel Mooring Systems (MVMS)
Harbor Resources Manager Miller introduced Harbor Commissioner Avery and deferred to him for a
presentation.
Commissioner Avery provided a PowerPoint presentation, addressing background, existing moorings
and fields, the possibility of tying boats to docks rather than mooring camps, the purpose of the pilot
program, shrinking mooring fields and the number of moorings, examples of full -scale mooring
conversions to MVMS, benefits and costs, timeline, community outreach meetings, Ad -Hoc Committee
findings, examples of various anchor and float methods, results of a survey of the Newport Mooring
Association (NMA), and conclusions and recommendations.
Harbor Resources Manager Miller displayed an example of a product to deter sea lions and commented
on the costs estimates, noting they are very conservative. He added that fixed costs would include
engineering for designing the program and other costs would be variable depending on the number of
floats Council would want. He added that staff is recommending six MVMS.
In response to Council Member Gardner's question regarding comments from the public during the
various meetings, Commissioner Avery recalled that the majority of attendees that were also permitees
are members of the NMA and several offered their moorings for the pilot program. He believed that the
trial period would help in determining public acceptance, adding that the intent is to deliver more value
to permitees.
In response to Mayor Pro Tem Selich's question whether land -side property owners were contacted,
Commissioner Avery reported that in most cases, views are increased for everybody, but there will be
winners and losers.
Council Member Gardner commented about people on the waterfront who were very concerned about
their views and wondered if more water - quality issues will be created as people will be doing more
things on their boats.
Discussion followed regarding costs associated with furnishing entire mooring fields and related
benefits to mooring holders. It was noted that it has never been proposed that all existing moorings
would be on docks.
Council Member Gardner suggested doing a City survey of all mooring holders. Mayor Hill noted that
one of their goals is to make more water available for use and stated that the survey should be broader
and not just to people that own moorings.
Commissioner Avery suggested that docks should be funded by the people that sign up for it. Mayor
Hill stated that the City should be able to spend money to make the Harbor a viable tool for those
people that would prefer to have a dock to moor to, but does not because of cost, while at the same time
making more water available for people to use.
Council Member Daigle commented on moorings for the independently- spirited who want space around
their vessels and Commissioner Avery reported that a mooring permit does not grant a right to water
space.
Council Member Henn noted that not every mooring is going to be switched to a fixed mooring and
stated that a survey needs to be carefully done, making it clear that people will be offered the
opportunity to choose one type of mooring or another. He stated that, because there is a public benefit
associated with MVMS, the City should bear a substantial portion of the cost. Additionally, the survey
should take the cost factor out since the intent is to determine the desirability of MUMS. He added the
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possibility of a mooring point system and stated that he is in favor of the Mayor's initiative and doing a
trial due to the public benefit.
In response to Mayor Hill's question, Commissioner Avery commented that the trial will allow people
the opportunity to see the system and how it works. He added that there is a fear that the City will
want to recover costs by increasing mooring fees. He commented on the difficulty of using the system by
people who use their boats often compared to people who live aboard their vessels.
In response to Council Member Henn's question, Harbor Resources Manager Miller reported that there
are approximately 20 liveaboards and that all are mooring holders. He then addressed next steps.
Mayor Pro Tern Selich indicated his support of doing a survey and obtaining additional information.
Harbor Resources Manager Miller reported that staff can conduct a survey and return with results in
September.
Mayor Hill suggested allowing four weeks and commented positively on the work the Harbor
Commission has been doing this year.
Norman Von Herzen expressed the opinion that the concept that this would increase the value of
moorings is flawed and believed that the concept is a public - health danger. He expressed concerns
regarding using the buoys by sea lions and referenced an article regarding the problem in The Log. He
added that the concept is an invitation for sea lions and seals to haul out and propagate and defecate on
the floating docks. He addressed possible liability issues to the City.
George Hylkema believed there is little interest in MVMS. He commented on increases in mooring fees,
the proposed pilot program, and the City having to increase fees to pay for its capital investment on a
permanent program. He addressed increased costs in providing power and water to the floating docks
and providing a water taxi service.
Bill Moses, Member of the NMA Board, thanked Harbor Resources Manager Miller and Commissioner
Avery for their work on this matter and acknowledged that there was no hue and cry to replace the
current system. He believed that this seems to be a solution looking for a problem where one does not
exist, added that the docks would add a lot of square footage where such do not currently exist, and
commented on the existing empty moorings. He stated that there may be some places where the system
could provide some benefit and spoke in support of a City survey to measure the viability of the
program.
Mayor Hill summarized direction for the City to conduct a survey, that it should be broader than just
mooring holders because of the public benefit involved, and that the matter should return to the City
Council as an action item. Mayor Pro Tern Selich stated that the survey should also include all bayfront
property owners.
SS4. Overview and Discussion on Current and Future Orange County Sanitation District
(OCSD) Regional Projects within the City
Council Member Hill recused himself from this item since the discussion involves construction
within 500 -feet of his residence.
Council Member Henn recused himself from this item since the discussion involves
construction within 500 -feet of his residence.
Public Works Director Webb introduced the item and deferred to OCSD representatives for a report
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Jim Herberg, General Manager, OCSD, addressed the District's investment in sanitation infrastructure
in the City, including pump station and sewer line replacements /rehabilitations. He provided a status
update of projects in Newport Beach and reported that they are about to begin one along Coast
Highway. He indicated the intention of completing the projects in a way that is sensitive to the needs of
the public, but noting the importance of doing the work.
Council Member Curry arrived at 6.16 p.m.
Robert Thompson, OCSD Director of Engineering, provided a PowerPoint presentation addressing the
OCSD service area, OCSD assets within the City, completed projects, details of upcoming and future
projects, Newport force main rehabilitation, rehabilitation methods, and impacts to residents. He
reported that they are committed to reaching out to the community and listed outreach methods being
used.
Council Member Petros thanked the OCSD team for taking the time to report on the project and noted
this is a vital and important improvement. Additionally, he commented on the importance of getting
the message out to the people of the City so they understand what will be happening, as well as
minimizing disruption.
Council Member Gardner suggested informing neighboring cities so they can also consider taking
detours during construction. t''W16 V \,W�
In response to Council Member Curry's question, Mr. Thompson addressed the total costs of OCSD's
investments in the City, noting it is in excess of $100 million.
Council Member Curry noted the work is critical to protecting quality of life, as well as protection of the
Bay.
Mayor Pro Tem Selich stressed the importance of traffic control and placing devices before the problem
locations so people have more options to go around the area and encouraged OCSD to be sensitive of
that matter.
III. PUBLIC COMMENTS - None
City Manager Kiff announced that Council will adjourn to Closed Session to discuss the
items as listed in the Closed Session agenda and read the titles.
The City Council adjourned to Closed Session at 6:28 p.m.
IV. CLOSED SESSION - 6:28 p.m.
A. CONFERENCE WITH LABOR NEGOTIATORS
(Government Code § 54957.6)
Agency Designated Representatives: Dave Kill, 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 (LABEL); Newport Beach Firefighters Association (NBFA); Newport Beach Fire
Management Association (NBFMA); Newport Beach Lifeguard Management Association (NBLMA);
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).
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B. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
(Government Code § 54956.9(d)(1)): 1 matter
City of Newport Beach o. Banshee Construction, et. al.
Orange County Superior Court Case No. 2011- 00528392
V. RECESS
VI. RECONVENED AT 7:00 P.M. FOR REGULAR MEETING
VII. ROLL CALL
Present: Council Member Gardner, Council Member Petros, Council Member Curry, Council Member
Henn, Council Member Daigle, Mayor Pro Tern Selich, Mayor Hill
VIII. CLOSED SESSION REPORT
City Attorney Harp announced that there were no reportable actions taken.
IX. PLEDGE OF ALLEGIANCE — Council Member Daigle
X. INVOCATION — Council Member Curry
XI.
Mayor's Youth Council Year End Report
Recreation Supervisor Harmon recognized the 2014 Mayor's Youth Council, noting they are very hard-
working, service oriented, and involved in the community. He reported that 62 young people went
through the program this year and introduced Arthur Pescan, Natalie Cernius, and Nicole Lloyd for a
presentation.
Mr. Pescan, Ms. Cernius and Ms. Lloyd addressed the purpose and objectives of the Mayor's Youth
Council, activities and events, the Environmental Action Corps, Youth Government Day, recognition by
the School Board, and goals for the year.
The City Council thanked the Youth Council and spoke highly about the program.
The Youth Council thanked the City for its continued support, as well as Mayor Hill, Mayor Pro Tom
Selich, and Newport -Mesa Unified School District (NMUSD) President Karen Yelsey.
XII. NOTICE TO THE PUBLIC
XIII. CITY COUNCIL ANNOUNCEMENTS OR MATTERS WHICH COUNCIL MEMBERS WOULD
LIKE PLACED ON A FUTURE AGENDA (NON- DISCUSSION ITEM)
Council Member Gardner announced a meeting of the Water Quality /Coastal Tidelands Committee on
June 12, 2014, at 3:00 p.m. in the Newport Coast Conference Room and a meeting of the City Arts
Commission June 12, 2014, at 5:00 p.m, in the Council Chambers. Additionally, she commented on a
communication from the Planning Commission regarding vehicle lifts and requested consideration of
placing the matter on a future agenda.
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Council Member Petros commented on a recent meeting with NMUSD President Yelsey and
Superintendent Navarro to discuss traffic and parking issues around Corona del Mar and Newport
Harbor High Schools. He noted that there was a sense of willingness on behalf of the School District to
continue that dialogue.
Council Member Petros thanked Bob Baker, the driver of the 1955 Thunderbird which he and his wife
rode in at the Balboa Island Parade, and reported attending the Newport Jazz Concert. He also stated
that he participated in the Corona del Mar 5K and commented on the variety of activities in the City.
Mayor Pro Tem Selich reported attending the Balboa Island Parade and congratulated residents of
Balboa Island who worked hard to put on the event. He reported riding in his 1937 MG with his wife
and granddaughter. Additionally, he reported presenting the Character Awards at Ensign
Intermediate School and commented positively on the quality of youth in the City. He added that he
participated in the Corona del Mar 5K, attended the Balboa Yacht Club's First Wooden Boat Show and
presented the Mayor's Award. Additionally, he reported that the Federal Highway Administration
(FHWA) has certified that Tustin Avenue will not be on the map and announced a meeting of Speak Up
Newport in the Community Room on June 11, 2014, with a presentation by Rick Stein, Executive
Director of Arts in Orange County, on the City's sculpture program in the park. The reception will be
from 5:30 p.m. to 6:00 p.m. and the meeting will be from 6:00 p.m. to 6:30 p.m.
Council Member Daigle commented positively on the Balboa Island Parade and thanked the volunteers.
She commented on the classic and vintage cars, veterans, flags, school bands, and the Grand Marshall.
Council Member Henn announced a meeting of the Balboa Village Advisory Committee (BVAC) at
ExplorOcean on June 11, 2014, and listed items included in the agenda. He commented positively on
the Balboa Island Parade and thanked the volunteers. He congratulated Council Member Curry for his
win in the Primary Election for the 74th Assembly District.
Council Member Curry reported riding in a 1949 Packard for the Balboa Island Parade. He reported
participating in the Ensign and Corona del Mar Middle Schools Character Awards and commented on
the quality of students and youth in the schools and community.
Mayor Hill reported that the City has been working on the City's 4th of July public safety aspects and
reported that the Newport Beach Police Department and Recreation staff will be hosting a community
meeting on June 18, 2014, at 4:00 p.m. in the former Council Chambers to update residents on the
City's plans during the 4th of July. Additionally, he announced that the City's Building Division has
received the highest rating possible from the Insurance Services Office (ISO) under its Building Code
Effectiveness Program. He added that he participated in the Balboa Island Parade and commented
positively on the event, as well as the Art Walk. In addition, he reported attending the Chamber of
Commerce Athletic Awards and commented positively on the event and the gathering of young people.
Council Member Gardner announced the Newport Beach Arts Show on Saturday, June 14, 2014, from
1:00 p.m, to 6:00 p.m. at the Community Center.
XIV. PUBLIC COMMENTS ON CONSENT CALENDAR
Regarding Item 6 (Resolution Authorizing the Temporary Closure of Selected Streets and Parking Lots
for the July 4th Holiday Period), Council Member Henn commented on the July 4th security
arrangements and noted that the City has made tremendous progress in making it a family - friendly
event. He thanked the Newport Beach Police Department and the City's Recreation Department for
their work in this effort. Relative to Item 10 (Professional Services Agreement with RRM Design for
Balboa Village Design Guidelines, Street Improvement Plans and Wayfinding Sign Program), he
commented on the work of BVAC and staff and support in the process.
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Council Member Curry thanked City staff for their work on Big Canyon Reservoir (Item 8).
Council Member Gardner commented on the clarification addressed during Study Session relative to
Item 5 (Changes to Council Policies: F -2 and B -2).
Council Member Petros commented on Item 7 (Storm Drain Trash and Debris Interceptor Project),
noting that the trash and grade interceptors are critical to water quality in the Bay and the coast. He
added that in this $1.4 million effort, the City has leveraged only 25% of its money to gain 75% of the
funds from the OCTA. He congratulated Public Works Director Webb in this effort.
Gloria Hickman, Vice President of Canyon Crest Community Association, expressed concerns with Item
8 (Big Canyon Reservoir Auxiliary Maintenance Yard Project) and urged Council to approve funding for
enhanced landscaping and improved fencing to screen the views from the Canyon Crest homes. In
response to Council Member Curry's question, Public Works Director Webb noted that enhanced
landscaping has been added to the project at the request of the Canyon Crest Community Association
and will reflect the direction of the Zoning Administrator.
Jim Mosher commented on Item 10 (Professional Services Agreement with RRM Design for Balboa
Village Design Guidelines, Street Improvement Plans and Wayfinding Sign Program), noting that
taxpayers have invested a lot of money in Balboa Village with little results to date and asked regarding
a running total of how much has been contributed. Additionally, he commented on challenges related to
members of the public knowing what is being approved during the budget approval process.
XV. CONSENT CALENDAR
A. READING OF MINUTES AND ORDINANCES
1. Minutes for the May 27, 2014 Study Session and Regular Meeting [100 -2014]
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 the City Clerk to read by
title only.
B. RESOLUTIONS FOR ADOPTION
3. Adoption of Fiscal Year 2014 -15 Appropriations Limit [100 -2014]
Adopt Resolution No. 2014 -47, A Resolution of the City Council of the City of Newport Beach
Determining and Establishing an Appropriations (Gann) Limit for Fiscal Year 2014 -15 in
Accordance with Article XIIIB of the California Constitution and Government Code Section 7910,
in the amount of $159,687,483.
4. Declaration of Surplus Fund Balance in Assessment District 103 [100 -2014]
Adopt Resolution No. 2014 -48, A Resolution of the City Council of the City of Newport Beach
Directing Disposition of Balance in the Improvement Fund of Assessment District No. 103,
authorizing the City to declare the remaining improvement fund balance as surplus and provide
staff direction as to the distribution of improvement fund balances in Assessment District 103
(Peninsula Point).
5. Changes to Council Policies: F -2 (Reserve Policy) and B -2 (Recreation Fees and
Related Equipment Replacement Reserves) [100 -2014]
Adopt Resolution No. 2014 -49, A Resolution of the City Council of the City of Newport Beach
Amending Council Policy F -2 (Reserve Policy) and Council Policy B -2 (Recreation Fees and
Related Equipment Replacement Reserves), as attached to the staff report.
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6. Resolution Authorizing the Temporary Closure of Selected Streets and Parking Lots
for the July 4th Holiday Period 1100 -20141
Adopt Resolution No. 2014 -50, A Resolution of the City Council of the City of Newport Beach
Authorizing the Temporary Closure of Seashore Drive, Newport Boulevard, Back Bay Drive and
Balboa Boulevard, Selected Parking Lots, and Selected Feeder Streets.
Council Member Henn recused himself on this item due to real property interests or
business interests.
C. CONTRACTS AND AGREEMENTS
7. Storm Drain Trash and Debris Interceptor Project - Award of Contract No. 5551
(CAP14 -0039) [381100 -20141
a) Approve the project plans and specifications;
b) Award Contract No. 5551 to GRFCO, Inc. for the Total Bid Price of $1,277,350.00, and
authorize the Mayor and the City Clerk to execute the contract;
c) Establish an amount of $128,650.00 (approximately 10% of Total Bid) to cover the cost of
unforeseen work;
d) Approve Green Building Corporation's request to withdraw its bid; and
e) Amend the Measure M2 seven year CIP for fiscal years 2013 -14 through 2019 -20 to include
the Domingo Drive Litter Removal Project.
Council Member Henn recused himself on this item due to real property interests or
business interests.
S. Big Canyon Reservoir Auxiliary Maintenance Yard Project — Award of Contract
No. 5222 (CAP13 -0005) [381100 -2014]
a) Approve the project drawings and specifications;
b) Award Contract No. 5222 to Optima RPM, Inc. for the total bid price of $1,159,000.00, and
authorize the Mayor and City Clerk to execute the contract; and
c) Establish a contingency of $116,000.00 (approximately 10 percent) to cover the cost of
unforeseen work.
Council Member Henn recused himself on this item due to real property interests or
business interests.
9. Acquisition of 2014 Rule 20A Credits from the City of Mission Viejo (C -4977) [38/100-
20141
a) Authorize the City Manager to execute the Memorandum of Understanding (MOU) between
the City of Newport Beach and City of Mission Viejo documenting details of a transaction for
the Rule 20A credit acquisition and to provide the City of Newport Beach first right of
refusal to purchase additional Rule 20A credits from the City of Mission Viejo, as it becomes
available, at a purchase rate of $0.55 on the dollar; and
b) Authorize staff to process the Rule 20A credit transfer between the City of Newport Beach
and City of Mission Viejo with SCE.
10. Professional Services Agreement with RRM Design for Balboa Village Design
Guidelines, Street Improvement Plans and Wayfinding Sign Program (C -5845) [38/100-
2014]
Approve a Professional Services Agreement with RRM Design to update the Balboa Village
Design Guidelines, create a conceptual streetscape improvement plan, and develop a wayfinding
sign program for a not -to- exceed fee of $149,751.00, and authorize the Mayor and City Clerk to
execute the Agreement.
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D. MISCELLANEOUS
11. Planning Commission Agenda for the June 5, 2013 Meeting [100 -20141
Receive and file.
12. Annual Measure M Fund Eligibility Requirements [100-20141
a) Adopt the Measure M Seven -Year CIP; and
b) Direct staff to submit all necessary material to OCTA to satisfy the Measure M annual
eligibility requirements.
Mayor Hill (Sections 6 and 12), Council Member Gardner, and Council Member Henn
recused themselves on this item due to real property interests.
13. Board and Commission Scheduled Vacancies - Confirmation of Nominees [100 -20141
Confirm the nominations made by the Ad Hoc Appointments Committee:
Board of Library Trustees [l vacancy /minimum 2 nominees]
Jerry King (incumbent)
Roxana Mehrfar
Building and Fire Board of Appeals [2 vacancies /minimum 4 nominees]
John De Frenza
Jay Elbettar
Nourmohammadi Khorow
Stephen Sandland (incumbent)
City Arts Commission [l vacancy /minimum 2 nominees]
Judy Chang (incumbent)
Lesley Miller o .
Joan Templeton- Morris
Civil Service Board [1 vacancy /minimum 2 nominees]
Linda Beimfohr
William Bivens
Jeffrey Herdman
Harbor Commission [3 vacancies /minimum 6 nominees]
Thomas Dessel
John Drayton
Patricia Humphreys
William Kenney, Jr.
Duncan McIntosh (incumbent)
Douglas West (incumbent)
Parks. Beaches & Recreation Commission [2 vacancies /minimum 4 nominees]
Thomas Anderson (incumbent)
Ron Cole (incumbent)
William Hossfeld
Erik Weigand
Planning Commission [1 vacancy /minimum 2 nominees]
Fred Ameri (incumbent)
Peter Koetting
Albert Marshall
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City of Newport Beach
Study Session and Regular Meeting
June 10, 2014
Motion by Mayor Pro Tom Selich, seconded by Council Member Council Member Curry, to
approve the Consent Calendar; and noting Council Member Henn's recusal on Items No. 6, 7, 8 and 12;
Mayor Hill's recusal on Sections 6 and 12 of Item No. 12; and Council Member Gardner's recusal on
Item No. 12.
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
XVI. ITEMS REMOVED FROM THE CONSENT CALENDAR - None
XVII. PUBLIC COMMENTS ON NON - AGENDA ITEMS
Tom Moulson commented positively on the City's trash collection. He reported that his house is close to
the Civic Center facility and expressed concerns regarding the concerts. He stated that he hears the
amplification of noises and voices from his house and, added that the events are scheduled to start at
6:00 p.m. but they actually start at 3:00 p.m. He reported that he has written to the City several times
about his concerns, but feels stuck and suggested installing one - dimensional speakers that project
sound to the audience only.
Jim Mosher commented on the time spent by staff and Council on floating docks in the Harbor and
asked how every new Mayor sets initiatives that become initiatives for staff and Council. He stated
that the concept of Mayor initiatives is not included in the City Charter. Additionally, he commented on
the proposed allocation of money for the two Merchants Associations in the City and reminded Council
that the money is given by contract which requires a report to the City Council at its first meeting in
June of the activities they have engaged in during the previous year and how they expect to spend the
money in the coming year.
XVIII. ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES
Council Member Henn reported that the Tidelands Management Committee met on May 29, 2014, to
further consider the draft seawall policy that staff and the Committee have been working on.
Mayor Pro Tern Selich reported that the General Plan /Local Coastal Program Implementation
Committee met recently and had a vigorous discussion on what parts of the Harbor Code to include in
Local Coastal Plan regulations. He announced that the Committee will meet again on June 25, 2014, at
12:30 p.m. in the Newport Coast Conference Room.
Mayor Hill reported that Newport Beach and Company created a foundation that put on its first
educational program over several weeks. He reported receiving positive feedback this week, noting that
the educational process, activities, reports and functionality were excellent.
XDt. PUBLIC HEARINGS
14, Appeal of the Planning Commission's Finding of Substantial Conformance for the Echo
Beach Project (Formerly Seashore Village) Located at 5515 River Avenue (PA2014 -005)
[681100-20141
Senior Planner Murillo provided a PowerPoint presentation, addressing background, description of
the project, prior approvals by Council and the Coastal Commission, automatic extensions granted,
project history, location and surrounding properties, zoning designation, existing conditions, sale of
the property and new ownership, as well as requests for modifying the project. He addressed the
approved site plan, vehicular circulation and access, parking, pedestrian connectivity, the modified
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City of Newport Beach
Study Session and Regular Meeting
June 10, 2014
site plan, approved architecture plans, modified architecture plans, project approvals, CEQA
review, the Planning Commission's decision, appeal of the Planning Commission's decision, staff
responses, and recommendations.
Lennie DeCaro, appellant, stated that the modified project created six additional lots, She reported
that the project had 12 single - family residences and six duplexes, totaling 24 units in 18 buildings.
She believed that the developers have changed the plans and have added six buildings. She
referenced practices of other cities and stated that adding buildings and/or changing lot sizes would
prevent the project from being in substantial conformance. She referenced a pro forma done in 2007
and believed that it would not be relevant today. Additionally, she reported that the local
entitlements have expired and noted these are air space condominiums. She expressed concerns
that the developers are being granted special privileges and noted that this case is almost identical
to Save Our Neighborhood v. Lishman. She alleged that this is a new project and not a modified
project so therefore, must be given new and separate consideration. She commented on the
architectural plans, noting that the new owners are taking the prior architect's work product and
entitlements, and that the Planning Commission has given this new project a complete pass.
Rich Nolan, representing the developer, expressed support for the Planning Commission and staffs
recommendations to approve the project and addressed landscaping and architectural design, and
stated that there are no new impacts from the original plan. He requested that Council deny the
appeal.
Council Member Gardner noted that there was more landscaping but it appeared that there is less
open space in the modified plan. .
In response to Council Member Daigle's comment on the architectural design, Senior Planner
Murillo addressed the differences between the original design and the modified design. He added
that Council could propose additional architectural details if it so desired. He reported that there
are conditions requiring enhanced architectural features on elevations facing the streets.
Council Member Gardner commented on the additional buildings and wondered whether that is
considered significant. Community Development Director Brandt reported that in applying
substantial conformance to the revised project, the Zoning Code provides the criteria for evaluation.
She explained that the Zoning Code does not speak to the number of buildings on a lot, or to
reconfigurations of buildings and the locations of the buildings. Rather, the details specified in the
Zoning Code speak to the sum total of the number of units, whether or not additional permits would
be needed, and whether the changes involve a feature of the project that was a basis for or subject of
findings, conditions or specific considerations in the prior project approval .
Council Member Gardner stated that she looks at the project from an environmental point of view
and expressed concerns regarding the arguments that were brought up in terms of the City's
approval process.
City Attorney Harp reported that staff carefully reviewed the matter, including whether or not an
addendum was the appropriate document. He added that, from the CEQA standpoint, these are
relatively minor changes and noted that the Lishman case added mitigation measures, dealt with
wetlands and stream realignments, and that the proposed project in Lishman was significantly
different than what was originally approved. He expressed the opinion that the project before the
City Council proposes minor changes and that Lishman case is not comparable to the project being
considered by the Council.
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City of Newport Beach
Study Session and Regular Meeting
June 10, 2014
Mayor Hill commented on the prior efforts by the City to increase the amount of owner- occupied
housing in the West Newport area and noted that the projects assists the conversion of rental units
to owner - occupied units while adding an affordable element to it. He commented positively on the
modified project and expressed his support.
Council Member Henn referenced the comment as to how other jurisdictions would evaluate this
project and noted that the Zoning Code for Newport Beach must be applied to the decisions made on
behalf of the City. Community Development Director Brandt added that each jurisdiction has the
authority to establish their own criteria in their Zoning Code for evaluating changes to a project.
Council Member Henn stated that he believes the project is in substantial conformance and that his
personal opinion of whether or not he likes the project in general is of no relevance and did not enter
into his judgment on this matter.
Council Member Petros commented on the Tentative Map and Community Development Director
Brandt stated that the vision of ownership is in the air and there is only one parcel involved.
Council Member Petros complimented staff on the thoroughness of the report and stated that he
appreciated the comparisons on each of the topical areas. He expressed his support in determining
the project to be in substantial conformance.
Mayor Hill opened the public hearing.
Mike Johnson commented positively on the revised project, especially that the developer is
providing elevators for their three -story structures. He added that they have sprinkler systems
throughout the project, as well as guest parking, and commented on the developer's efforts at
community outreach.
George Schroeder expressed concerns regarding increased traffic on Neptune, discussed the original
and modified project, and expressed support for the project.
Bob DeCaro commented on the original conditions of approval, including approval of the floor plans
for each unit as precise plans and prohibiting future changes. He also commented on the proposed
open patio areas and the preservation of landscape and open space. He added that specific
architectural styles were called out in the original plans and believed that changes were prohibited.
He believed this is and should be considered a completely different project.
Jim Mosher expressed the opinion that Planning Commission and City Council are bending the
Municipal Code for the benefit of this project. He commented on the alternatives and referenced
Finding C of the Resolution. He stated that architecture and the site plan were considerations in
granting the approval in 2008 and believed that the modifications are not minor changes and should
be processed as a new application.
There being no further testimony, Mayor Hill closed the public hearing.
In response to Council Member Gardner's request, Senior Planner Murillo reported that there is no
specific condition requiring either the Craftsman or Plantation architectural styles and commented
on the intent of Condition No. 6.
Mayor Pro Tom Selich believed that the project is in substantial conformance and that it is a better
project than the original project.
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City of Newport Beach
Study Session and Regular Meeting
June 10, 2014
Community Development Director Brandt clarified that the applicable planning approvals and
permits are active and have not expired. She reported that there is a provision within the Zoning
Code that addresses permits that are tied to Tentative Tract Maps and the permits do not expire
until the Tentative Tract Map expires.
Lennie DeCaro referenced the Conditions that are part of the Resolution and noted that they call
out Plantation and Craftsman architecture. She encouraged Council to consider the public funds
that will be spent in litigating this matter and reiterated the reasons why she believes this is a
different project than what was originally proposed.
Community Development Director Brandt reported that the entitlements that Council authorizes
run with the land and not the property owner.
Council Member Petros clarified that his previous comments were specific to the elements of the
report that were provided and what he believes are proper and legal planning principles, not
potential gain for the City.
Mayor Pro Tem Selich added that his decision is also being made solely on the merits of substantial
conformance and the points in the staff report.
Motion by Mayor Pro Tern Selich, seconded by Council Member Henn, to adopt Resolution
No. 2014 -51, A Resolution of the City Council of the City of Newport Beach Upholding the Decision of
the Planning Commission and binding the Modified Plans to be in Substantial Conformance with
the Design Approved by Tentative Tract Map No. NT2007 -001 (County Tentative Tract Map No.
TTM 17194), Modification Permit No. MD2007 -044, Use Permit No. UP2007 -011, Coastal
Residential Development Permit No. CR2007 -001, and find that the environmental analysis of the
modified plans is included in the Adopted Mitigated Negative Declaration (SCH2O08021075) and
the Addendum is consistent with the requirements of CEQA and the CEQA Guidelines, for the Echo
Beach Project located at 5515 River Avenue (Formerly Seashore Village).
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
15. Resolution No. 2014 -52: Fiscal Year 2014 -15 Budget Adoption [100 -2014]
City Manager Kiff introduced the item and provided background, including prior considerations of
the item by City Council during Study Sessions. He added that the budget has been available, is
posted on the City's website in its proposed form, and addressed the elements of same. He provided
a brief presentation recapping some of the changes and noted this is a balanced budget. He
addressed the health of the City's budget, FY 2014 -15 position changes, Budget Checklists, and
recommended actions.
Council Member Daigle commented on the availability of signal synchronization technology and
asked regarding plans for continuing to optimize the City's infrastructure. Public Works Director
Webb reported that the City is in the process of finishing the last two phases of the program and
noted the need for software updates. He added that more time is being spent operating the system
and commented on an upcoming meeting with the Police Department regarding how Public Works
can be assisted during large events. He reported that contract staff has been brought in to fill some
of the staffing requirements and that, at this point, staff will monitor the system with the possibility
of growing it in the future. He commented on the adequacy of the staffing level and the possibility
of hiring part -time staff to work on the weekends, as needed. Council Member Henn commented on
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City of Newport Beach
Study Session and Regular Meeting
June 10, 2014
weekend, overtime situations, and encouraged staff to ensure there are eyes on the cameras on
weekends during the summer and on special holidays on the Peninsula.
In response to Council Member Daigle's comment regarding salary adjustments, City Manager Kiff
noted that the Resolution asks Council to change a couple of salary ranges and that the overall
budget would accommodate agreed -upon MOU changes.
City Attorney Harp commented on the recusal process, noting that Council Members would need to
recuse themselves from specific items for which they may have a conflict of interest, but are allowed
to vote on the budget as a whole, without having a recusal.
Mayor Hill opened the public hearing.
Lisa Wolter, Executive Director of the Susan G. Komen of Orange County, provided feedback on the
Special Events funding portion of the budget, believing that the grant system is indecipherable,
lacks community input, and puts a strange mix of events together which reflects the City's values.
She reported that the City was a founding host for the Race for the Cure years ago, but that during
the last few years, City participation has declined. She indicated that the amount the City has
allocated does not cover their permit fee and Ms. Wolter stated that they want to be in a
municipality that values their event. She withdrew their request for support, stated that they will
pay for Police, Fire and traffic services, and will hold the event on September 28, 2014, but then will
move the event.
Jim Mosher commented on the City's employees paying their share of the City's Ca1PERS benefits
and believed that there is a line item that shows that taxpayers are still paying for that
contribution. He expressed confusion regarding salary range adjustments to help employees pay for
the Ca1PERS contributions. Additionally, he commented on the Resolution relative to the total
appropriation being approved, internal charges, and on the lack of information regarding how
Council Members spent their discretionary funds.
There being no further testimony, Mayor Hill closed the public hearing.
Motion by Council Member Henn, seconded by Council Member Curry, to adopt Resolution
No. 2014 -52, A Resolution of the City Council of the City of Newport Beach Adopting the Budget for
the 2014 -2015 Fiscal Year, as amended by the budget checklist, and Adjusting the Employee Salary
Range.
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
16. Consider the Granting of Non - Exclusive Solid Waste Franchise to Tierra Verde
Industries [100 -2014]
Municipal Operations Co- Director Pisani provided a staff report and addressed the proposal by
Tierra Verde Industries. He noted that the Agreement would expire in 2017.
Discussion followed regarding the possibility of consolidation of hauling services in the future.
Motion by Council Member Curry, seconded by Mayor Pro Tem Selich, to adopt Ordinance
No. 2014 -10, An Ordinance of the City Council of the City of Newport Beach Granting a Non-
exclusive Solid Waste Franchise to Tierra Verde Industries, a California Corporation to Provide
Solid Waste Collection Services Upon the City Streets and Within the City of Newport Beach.
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City of Newport Beach
Study Session and Regular Meeting
June 10, 2014
Mayor Hill opened the public hearing. There being no testimony, he closed the public
hearing.
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
17. Recycled Water Rate Establishment [100 -2014]
Municipal Operations Co- Director Murdoch provided a PowerPoint presentation addressing recycled
water in the City, current rates, rate structure, proposed rates, and next steps. It was noted that
staff is proposing a reduction in rates for current users of recycled water and moving away from an
abstracted indexed rate to a true cost of the commodity and service.
In response to Mayor Pro Tem Selich's question regarding use of the recycled water for City
landscaped medians and parks, Municipal Operations Co- Director Murdoch responded
affirmatively. ®'yam Nw�
Council Member Daigle noted that it is being characterized as a rate reduction, but pointed out a
monthly service charge and believed that increases depend on the amount of water used. Municipal
Operations Co- Director Murdoch clarified that fixed costs were shifted to the fixed fee and pointed
out the projected rate reductions customers would receive.
Mayor Hill highlighted the percentage of the water bill allocated to water costs versus the
percentage allocated to equipment costs, as well as the reduction in the overall bill due to reductions
in water costs.
Council Member Daigle questioned projecting a rate reduction where there is no control over water
costs. Municipal Operations Co- Director Murdoch noted that the Orange County Water District
(OCWD) could increase the commodity cost.
Council Member Henn reported that the City analyzes the fee structure for costs when it analyzes
fee rates, and that an outside consultant analyzes the fee structure. He emphasized that this is
another example of the City passing savings onto residents.
Mayor Hill highlighted cases where there will be significant savings in rates.
Motion by Council Member Curry, seconded by Council Member Petros, to a) direct staff to
send rate notices to customers in compliance with Proposition 218 and Resolution No. 2009 -58; and
b) set the date of August 12, 2014 for tabulation of protests and public hearing of proposed rates
pending results of protests.
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
18. Approval of Agreement for Weed Abatement Services (C -3494) [381100 -2014]
City Manager Kill stated there is no staff report for this item.
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City of Newport Beach
Study Session and Regular Meeting
June 10, 2014
Motion by Council Member Curry, seconded by Mayor Pro Tem. Selich, to approve the five -
year agreement with Southland Landscape Maintenance for weed abatement services at various
City -owned properties at a total not -to- exceed cost of $725,000 (for the five -year period), and
authorize the Mayor and City Clerk to execute the agreement.
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
XXL MOTION FOR RECONSIDERATION - None
NMI. ADJOURNMENT — 9:16 p.m.
The agenda for the Study Session, Closed Session, and 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 June 5, 2014, at
4:00 p.m.
City Clerk
Recording Secretary
I
Mayor
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