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HomeMy WebLinkAbout01 - Minutes 11-8-99November 22, 1999 Agenda Item No. 1 CITY OF NEWPORT BEACH City Council Minutes Study Session November 8, 1999 - 4:00 p.m. INDEX Present: Adams, Glover, Thomson, Debay, Ridgeway, Noyes, Mayor O'Neil Absent: None CURRENT BUSINESS 1. CLARIFICATION OF ITEMS ON THE CONSENT CALENDAR. Council Member Debay indicated that she will be pulling Agenda Item 18 (Balboa Yacht Basin) tonight. She pointed out that there are alternatives listed in the staff report, but that more discussion needs to be conducted prior to any action occurring. Council Member Ridgeway agreed with Council Member Debay. He added that he will be pulling Agenda Item 16 (Marinapark Request for Proposals). Regarding Agenda Item 4 (Hoag Hospital Variable Rate Demand Revenue . Bonds), Council Member Ridgeway questioned how this could have no obligation to the City. City Manager Bludau noted that this will be discussed during Study Session Item 3. 2. CONFERENCE AND VISITOR'S BUREAU STATUS PRESENTATION. Rosalind Williams of the Conference and Visitor's Bureau (CVB) reported on their Rose Bowl Campaign. She stated that all of the Pac 10 and Big 10 Alumni Directors received a dozen red roses at the beginning of the football season. Further, the CVB developed a City puzzle in which a piece of the puzzle and a poem of the City's amenities and attributes were sent to the Directors each week. She stated that the CVB has also been flying banners at the games, which read "Think Rose Bowl, Think Newport Beach ", to better familiarize them with the City. Ms. Williams stated that the CVB also conducted sales trips to Los Angeles, San Francisco, and Chicago to meet with 87 clients; attended six trade shows; conducted four familiarization trips for 68 meeting planners, tour operators, and travel writers; and presented the City as a destination of choice to media in New York City, London, Hamburg, Frankfurt, and Munich. She also displayed three articles from Sunset Magazine regarding Corona del Mar, Newport Beach, and the Environmental Nature Center; and an article from the L.A. Times about Orange County. Ms. Williams indicated that the CVB is working on two national campaigns, • one is designed for meeting planners and one for consumers. She reported that the CVB has had 750,000 hits to their web site in the last three months; they placed print ads in 10 publications; secured the inclusion of the City for the Wheel of Fortune game show; and worked to reestablish the Film Volume 53 - Page 57 No report City of Newport Beach Study Session Minutes November 8, 1999 INDEX Festival. In December, the CVB will appear on national television when the Masters /Diners Club Golf Tournament plays at Pelican Hills. She reported that the Board voted to buy a 30 second spot on the Sunday broadcast, in addition to the two hours each day of visibility they will have on ABC. Ms. Williams noted that the CVB will be lighting America's tallest Christmas tree on November 19 at Fashion Island and that they will also be promoting the Christmas Boat Parade. Ms. Williams reported that she has been working with Deputy City Manager Kiff on the concept of a Citywide kiosk system and added that grant funds may be used to develop this project. Ms. Williams stated that 3,000 requests for information were filled during the Summer Rewards Program. She indicated that, although it is difficult to track the amount of business that was related to this campaign, the hotels are still wanting to move forward with a similar campaign for next summer. She reported that the hotel occupancy for the first quarter was 74.7 percent with an average room rate of $143.39. She compared that to the current occupancy of 75.3 percent at a rate of $135.69, and noted that, with an .8 percent drop in occupancy and a $7.70 increase in the average rate, there is still a 28 percent overall increase over the first quarter. In response to Council Member Noyes' questions, Ms. Williams indicated that it is not possible to determine if the web site hits are coming from the City link because the CVB is also linked to a number of travel - related web sites. She stated that, even though they are unable to download the personal information of those viewing their web site, names, addresses, and pertinent information given to them in order to fill requests are maintained in a database. She noted that all the information that is on their visitors guide is also on the web site. In response to Council Member Glover's questions regarding the kiosk program, Ms. Williams stated that the CVB has an Info- Center, and that the company who maintains their kiosk alerted her to the grant fund opportunity. She indicated that the new free - standing kiosk would be eligible to receive grant funds because it will also have tourist, transportation, and employment information. She stated that the kiosk program will probably be a cooperative effort between the City and the CVB. Council Member Glover suggested placing the kiosk at Fashion Island rather than on the Peninsula. City Manager Bludau stated that placing the kiosk at the beach was suggested because it was reported that the lifeguard tower receives a number of calls requesting dining suggestions or general information. Deputy City Manager Kiff reported that there would be a cooperative link to the CVB system; the system would allow the user to make a number of choices from the screen and print out hard copies. Council Member Glover expressed the opinion that the City needs to be thinking about where the high -end visitor frequents. Ms. Williams explained that a kiosk at McFadden Square was suggested because that structure already exists and is not being used. However, in terms of usage and the marketplace, she agreed that Fashion Island would be an appropriate location. She added that she was not sure if the kiosk location has been finalized. Volume 53 - Page 58 u 0 9 0 City of Newport Beach Study Session Minutes November 8, 1999 In response to Council Member Debay's questions regarding the Boat Parade, Ms. Williams explained that the CVB does a fair amount of marketing but that the hotels generally handle their own weekend packages. Council Member Ridgeway indicated that the kiosk concept was brought to the Promote the Revitalization of the Balboa Peninsula (PROP) Ad Hoc Committee for review, but they agreed that placing a kiosk at the pier is not the most affective location. He stated that more analysis should be conducted regarding where it should be located. HOAG HOSPITAL VARIABLE RATE DEMAND REVENUE BONDS BACKGROUND. City Manager Bludau indicated that it was appropriate to have this item discussed at both the study session and during the regular meeting. He reported that the City has provided backup for the sale of bonds for Hoag Hospital on three previous occasions, starting in 1984, and indicated that the wording in the bonds provides protection that the City is not going to be held responsible for the bonds in the future. Administrative Services Director Danner reported that this is the fourth time the City is talking about entering into this type of transaction. He stated that the four principals involved, Pete Foulke, Jennifer Mitzner, Kurt Yeager, and Charles Plimpton, are present to answer any questions. Pete Foulke, Executive Vice President of Hoag Hospital, stated that the $125 million bond will be used to fund part of the hospital's ongoing capital improvement program. He reported that the hospital is going through a complete renovation of all its infrastructure and constructing a major addition, noting that State legislation is now requiring all hospitals to be brought up to a new seismic standard. He explained that the main hospital's power source is 25 years old, and that the air conditioning and power plant boilers need replacing. He indicated that they conducted a cost analysis on whether to build a new hospital or upgrade the infrastructure, and that the analysis determined that upgrading the infrastructure would be half the cost of building a new hospital. He reported that the biggest cost involves replacing the four -story building as they cannot bring the old structure up to the new standards. Mr. Foulke stated that the emergency generators have been replaced and that the new generators are much quieter. In response to Council Member Ridgeway's questions regarding the four - story building, Mr. Foulke stated that the seven -story building will be an addition to the four -story building. The clinical functions will go into the new building and the old building can be used for support -type services, not patient care. He indicated that the new building has already been approved, as part of the master plan. In response to Mayor Pro Tem Thomson's questions, Mr. Foulke clarified that the $125 million will be in addition to the current outstanding debt amount. He confirmed that none of the previous issues have been retired and that the total aggregate amount will be $316 million. He assured that the hospital's assets are available to stand up for this if a problem occurred. Additionally, the hospital goes through a rating process and currently has a Volume 53 -Page 59 INDEX Hoag Hospital/ Revenue Bonds (40) City of Newport Beach Study Session Minutes November 8, 1999 INDEX AA rating. He indicated that they do not anticipate purchasing any insurance in case of default, but assured that there is no liability on the part of the City even if the hospital reserves became inadequate since the bonds are backed strictly by the hospital's assets and revenues. In response to Council Member Debay's question regarding the fee, Mr. Foulke noted that the City will receive $200,000, and that Council decides how that fee is spent. Mayor O'Neil reported that he represents Hoag Hospital on a number of legal matters and that he will not be voting on the item tonight. However, since this is a discussion item at this time, he feels he currently does not have a conflict of interest. In response to Mayor O'Neil's question regarding how the $200,000 will be used, Mr. Bludau indicated that this decision will not be decided tonight. Council Member Ridgeway asked if the hospital has anticipated the changing environment of the medical profession and health care. Mr. Foulke indicated that it has and that the rating agencies have also taken that into consideration. He reported that the hospital has substantial investment assets to back the bonds and confirmed that Hoag Memorial Hospital is a non - profit organization (501 -C3) and that its reserve is about $500 million. Kurt Yeager of Stradling, Yocca, Carlson & Rauth, stated that the real borrower is the hospital, with the City acting as a conduit. The bonds will . have a tax exempt status and the hospital will enjoy a tax exempt rate. He indicated that the City would not be acting any differently than many jurisdictions in California, noting that multi- family housing, education facilities, and healthcare facilities are typically financed this way. Mr. Yeager reported that the bonds are sold pursuant to an official statement. He indicated that the following will be stated on the face of the official statement and within the document: "The bonds are not the obligation of the City with any constitutional debt limit or payable solely from the revenues; and are not at General Fund responsibility of the City ". He stated that the bond proceeds are made available to the City, which then loans the proceeds to the hospital. He assured Council that Hoag Hospital promises to repay the amount in the form of a loan agreement which is pledged to the repayment of the bonds. It is the essence of the obligation that is the sole security for repayment of the bond. He emphasized that the City has absolutely no responsibility or obligation with respect to payment of principal and interest on the bond. He noted that the City is acting as the issuer of municipal securities and that it is important that legal requirements have been met. The City's bond counsel is responsible for drafting the offering document, and the underwriters are responsible for marketing the bonds. Mr. Yeager indicated that this credit will receive a AA rating, which is the rating of all but a few of the large banks, and stated that this is a reflection of Hoag's financial ability to manage this level of debt. Council Member Ridgeway asked why the hospital would be borrowing if it has substantial reserves. Mr. Yeager stated that the hospital conducted an evaluation of its assets and resources, and determined that this is an attractive way to manage it. He pointed out that the interest rate is low; Volume 53 - Page 60 0 0 • City of Newport Beach Study Session Minutes November S, 1999 that this is better than going to a bank for a conventional loan; and that the variable interest rate bonds will trade at 3.5 percent interest. Regarding being a non - profit organization, Council Member Ridgeway asked if this loan jeopardizes the hospital's category and disqualifies them since they make too much money. Mr. Foulke indicated that charitable institutions can jeopardize their status if they accumulate an exorbitant amount of money and do not spend it on their charitable purpose. However, he believed that the hospital is not close to doing that since they spend a great deal on their charitable purpose. In response to Council Member Adams' questions, Mr. Bludau reported that there is no cost to the City and that any cost incurred would be a part of the bond issuance amount. He stated that the $200,000 fee was an offer made by Hoag Hospital and was not negotiated by staff. Mr. Yeager reported that the City has bond counsel on this issue and that the hospital is also paying all of the costs associated with this. He stated that the City's bond counsel is responsible solely to the City and is engaged to render an opinion that the bonds are valid and tax free and to draft the official statement. Mr. Bludau added that Mr. Danner is the staff member to discuss bond issues with. Mr. Yeager stated that the issuance of bonds in this nature is generally approved at a public hearing and that the proposed resolution recites the conduct of a public hearing. He believed that a public hearing notice has been duly published in the newspaper; however, he pointed out that this is not cited as a public hearing on the agenda. He indicated that Council may want to move this to the public hearing section. Mayor O'Neil requested that City Attorney Burnham review this and advise Council for tonight's meeting. 4. STATUS REPORT ON TIDELANDS ADMINISTRATION REALIGNMENT OF RESPONSIBILITIES. Mayor O'Neil left the meeting at 4:50 p.m. City Manager Bludau reported that Council previously identified improving tidelands administration as one of its goals for the calendar year, noting that there is no comprehensive understanding of how the tidelands properties are handled. He explained that the first organizational chart (Attachment A) shows the current organization and indicated that he worked with staff to try to consolidate and refine some responsibilities that make more sense. He reported that Attachment B is a proposed organizational chart but can be refined and brought back if needed. Deputy City Manager Kiff stated that the hash marks in Attachment B show the suggested changes to the tidelands administration. He reported that a significant change involves how the City deals with leases. He indicated that it is suggested that the negotiations occur in the City Manager's office, and have the Fire and Marine Department handle enforcement and follow - up. Pointing out that that the Fire and Marine Department conduct a lot of harbor plan reviews associated with permits, he expressed the opinion that this expertise arguably lies in the Building Department. He indicated that he would be handling more of the environmental mitigation activities in cooperation with the Public Works Department. Volume 53 - Page 61 INDEX Tidelands Administration (51) City of Newport Beach Study Session Minutes November S, 1999 INDEX In response to Council Member Glover's questions regarding the NPDES and Countywide storm water management, Mr. Kiff indicated that the proposed change reflects the slow focus that is occurring at the County level which is changing the problem of urban runoff from a Public Works focus to a County /City administration function so that the City Manager would have more of a role in NPDES education. He stated that he expects that Public Works would maintain the support that they currently give and believed that the City would have more oversight over urban runoff throughout the County. Council Member Glover agreed that the City needs someone to oversee this issue better. Mr. Bludau stated that the City is looking at some major capital outlays in the future and some cost - sharing responsibilities with the other agencies in the watershed. He indicated that it makes sense to move some responsibilities into the City Manager's office so that a long term view can be taken about the City's possible cost consequences in the future. With regard to the nuts and bolts of the project, Mr. Bludau indicated that Engineering and Public Works would be involved with this and will also attend meetings. Additionally, the City is actually talking about policy issues when cutting edge regulations and how the City is going to try to limit the amount of contaminants flowing into the Back Bay are being discussed. Regarding the mooring issue, Mr. Kiff stated that the proposed functions of the Orange County Sheriffs Department will not be changed much. He indicated that the City has received a number of complaints from County mooring owners and that the City is proposing to take a more active role. Council Member Glover requested a copy of the minutes that clarify a City Manager letter which discussed recognizing a location where the City can erect a building on one of the tidelands. Mr. Kiff indicated that this could have something to do with a site to remove pilings for commercial dredging operations or about examining the possibility of placing a marine education center on Shellmaker. Council Member Ridgeway indicated that he is the Chairman of the Harbor Quality Committee and is also on the Harbor Committee that is looking at the Master General Plan. Regarding the environmental issues, he agreed that the intergovernmental contact needs to be coordinated through the City Manager's office. Council Member Ridgeway believed that the Fire and Marine Department are actually two different concepts and that much of the tidelands issue relates to business and not safety. He expressed the opinion that the lifeguards and junior lifeguards are the only box that is properly under the Fire Department, and that the City should probably establish a separate Marine Department again. He stated that separating the Fire and Marine Department should be discussed. Mr. Bludau highlighted the proposed change to annually conduct lease and permit enforcement and inspection. Council Member Ridgeway added that the Harbor Committee will be recommending that a Harbor Commission be formed and that a separate department head would probably be needed to oversee this. Volume 53 - Page 62 0 0 City of Newport Beach Study Session Minutes November 8, 1999 Mr. Bludau requested and received confirmation that Council feels comfortable with the proposed organization, but that the overall organization should be looked at. 5. ESTABLISHMENT OF A PUBLIC INFORMATION FUNCTION. City Manager Bludau reported that the responsibility of distributing accurate information to the populous was discussed at a retreat on September 18. He indicated that a number of alternatives were discussed but that he recommends that the City establish a public information function and place this function under the City Manager. He noted that it is envisioned that the position be able to disseminate quality, readable information that will regularly go out to the residents; coordinate any press relations; liaison to community and homeowner associations; and help investigate and respond to citizen complaints and requests for information. Mr. Bludau believed that, for what the City wants to do and the number of issues that are occurring, the City needs someone who is vested with the responsibility of helping put out newsletters so that the public has the opportunity to hear what the City is doing and provide feedback. Council Member Debay expressed her support and reported that the Environmental Qualities Affairs Citizens Advisory Committee (EQAC) struggled to contact the homeowners' associations. She stated that the City needs someone to concentrate on producing a newsletter. Mr. Bludau stated that it is difficult for staff to put out a regular newsletter because of the daily workload and because it is a major undertaking. Mr. Bludau corrected the Executive Summary which states that the estimated budget for this function is $125,650 when it is actually $168,500. He reported that, in order to help underwrite the publication, staff tried to incorporate coupons or get a buy -in from businesses. However, he recommended waiting until the newsletter is established, responsive, and well -read before seeking any kind of financial support from businesses. Council Member Glover stated that she would not want businesses to fund a newsletter that is put out by the City under any circumstance. Regarding press coordination, she envisioned the public information person to be someone who has been a newspaper reporter. She expressed concern about how the City presents accurate information and how one person could handle all the listed functions. She also expressed concern regarding an article about the Mayor race in the Daily Pilot in which "City staff' relayed information. She questioned who City staff is and stated that Council would know who this person was if there was a public information officer. Mr. Bludau stated that the article's author told him that the information did not come from any City staff member. Council Member Ridgeway asked if this position would be an in -house person who interfaces with the homeowners' associations and EQAC. Mr. Bludau explained that he tried to provide Council with as close to a job description as possible, knowing that it may be beyond the capabilities of any one person. He stated that the amount of time that is spent with the homeowners' associations would depend on the issue, but that this position would be a point of contact for the associations and the City. He believed Volume 53 - Page 63 INDEX Public Information Function (66) City of Newport Beach Study Session Minutes November 8, 1999 INDEX that the most important aspect of this position is making sure that regular newsletters are produced that provide information relative to the status of City issues. Mr. Bludau indicated that the reporters will probably always want to go directly to Council in order to get a quote; however, internally, the position will allow staff to coordinate and establish policies about who speaks to reporters. Motion by Council Member Debav to direct the City Manager to return to the City Council with a Budget Amendment to fund a Public Information function within the City Manager's Office. Paul Gerst, 2028 Vista Cajon, read comments he provided Council on the criteria for a successful ombudsman program. He stated that most of the associations do not need a public relations person attending their meetings. He stated that the associations would like to have meaningful information and a mechanism to research materials about projects in the community. Tom Hyans, resident and member of EQAC, hoped that Council takes a close look at the proposal since EQAC is intending on doing a lot of what is being proposed for this position and EQAC is a volunteer committee. He expressed concern regarding the amount of salary and benefits this position would receive and reported that 64 percent of the City's operating budget goes toward salaries and benefits for City employees. He stated that the City did produce a newsletter but there was concern about the cost. He expressed the opinion that he does not need this position and that he knows what is going on in the City because he pays attention to Council meetings. He noted that there are a lot of ways to get information. Mayor Pro Tem Thomson believed that the motion entails considerable rethinking of this issue and that the report is not the only guideline for establishing the person's functions. Mr. Bludau emphasized that this will not be an ombudsman position since it would facilitate public information. He reiterated that public information would go out on a regular basis and be an additional source for the citizens. He indicated that he is looking for direction if Council accepts the concept. In response to Council Member Adams questions, Mr. Bludau stated that he has considered utilizing a contract employee, but that there are some legal standards that must be met for a contract position as opposed to a staff position. Council Member Adams indicated that he is ambivalent about this, noting that he likes the objectives but does not like the price tag, and is unsure about the effectiveness of this position. He pointed out that the advantage of having a contract employee would be that the position could be let go in a year if it was not working out. He emphasized that he supports providing information to the public so that they can participate in issues; however, questioned whether frequent and less expensive press releases would be more beneficial over newsletters. Mr. Bludau stated that he could look into the legal standards of making this position a contract employee. Council Member Noyes reviewed the many attempts at doing something like this. He believed this should be done but questioned how it should be done. Volume 53 - Page 64 0 City of Newport Beach Study Session Minutes November S, 1999 He expressed support of Mr. Bludau wanting this position, but expressed concern relative to its cost. He suggested that Mr. Bludau meet with EQAC's communication subcommittee. Council Member Ridgeway stated that he thought this position sounded terrific until he looked at its budget. He expressed the opinion that the local newspaper is more adversarial than friendly and that the City is setting itself up to waste a monumental amount of money. Regarding the press releases, Council Member Noyes hoped that they carry the same weight and keep the community informed of issues in a neutral manner. He noted that a press agent works well for the Police Department. Mr. Bludau clarified that this position would not be used in the Police or Fire Departments. Noting that the City is currently spending $72,000 in publications, Mr. Bludau stated that the cost of the newsletter publication and design is $166,000 without salary. Council Member Ridgeway stated that he would support having this position be a contract position. Council Member Glover stated that she still is not sold on newsletters, but supports the idea of having this be a contract employee. She believed that this was initially envisioned to be a former reporter who handles press releases and not a liaison with the homeowners' associations or someone who handles resident complaints, inquiries, and issues. Mayor Pro Tem Thomson stated that there is clearly a need to provide better information. He indicated that he asked Council Member Debay to head a Council Ad Hoc Committee to study this, along with the City Manager, to clarify the job functions and report back at a future study session. Council Member Ridgeway suggested reminding the public at the beginning of every meeting that the City has a web page. He believed that the City should use its resources better, noting that it has access to cable television. Council Member Adams agreed that there are a lot of opportunities to get information, and stated that the press receives the same agenda packets that Council receives. He stated that some of the sensitive issues might be more appropriately handled by higher level staff members and that a contract employee that just writes press releases, has more mechanical duties, and serves as a single contact point makes more sense. Council Member Debay amended the motion such that she will head a Council Ad Hoc Committee to study this matter for 60 days with the City Manager and bring a report back at a future study session. The amended motion carried by the following roll call vote: Ayes: Adams, Glover, Thomson, Debay, Ridgeway, Noyes Noes: None Abstain: None Absent: Mayor O'Neil Volume 53 - Page 65 II `101)x/:1 City of Newport Beach Study Session Minutes November S, 1999 PUBLIC COMMENTS - None ADJOURNMENT - 5:40 p.m. The agenda for the Study Session was posted on November 3, 1999, at 3:00 p.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. City Clerk Recording Secretary Mayor Volume 53 - Page 66 INDEX 0 CITY OF NEWPORT BEACH City Council Minutes DRAFT Regular Meeting November S, 1999 - 7:00 p.m. INDEX CLOSED SESSION - 6:00 p.m. CLOSED SESSION REPORT PRESENTED - None. RECESSED AND RECONVENED AT 7:00 P.M. FOR REGULAR MEETING ROLL CALL Present: Adams, Glover, Thomson, Debay, Ridgeway, Noyes, and Mayor O'Neil Absent: None Pledge of Allegiance - Council Member Debay. Invocation by Reverend Ed Snedeker, Saint Andrews Presbyterian Church. CITY COUNCIL ANNOUNCEMENTS OR MATTERS WHICH COUNCIL MEMBERS WOULD LIKE PLACED ON A FUTURE AGENDA FOR DISCUSSION ACTION OR REPORT (NON- DISCUSSION ITEM): Council Member Glover requested that the City Manager prepare a report showing what the City of Newport Beach spends per person compared to the other thirty -three cities in Orange County. She asked that this per capita information be illustrated in chart form. She also asked that a chart be prepared showing the comparison of sales taxes in each of the cities. And, lastly, she asked that information on reserves be included, and illustrated either by operating budget or per capita. Mayor O'Neil thanked Mayor Gary Monahan and Council Member Heather Somers of Costa Mesa for sponsoring an event to discuss airport issues, held the previous week. Mayor O'Neil said that the meeting was well attended and he expressed his appreciation to Costa Mesa for taking an active roll in the critical airport issue. Mayor O'Neil announced that Bonnie O'Neil has been invited by the Daily Pilot to write a weekly editorial on the airport issue. He said that the first column should run in the upcoming Saturday edition. CONSENT CALENDAR READING OF MINUTES /ORDINANCES AND RESOLUTIONS 1. MINUTES OF THE ADJOURNED REGULAR AND REGULAR • MEETING OF OCTOBER 25, 1999. Waive reading of subject minutes, approve as written and order filed. Council Member Debay and Mayor Pro Volume 53 - Page 67 City of Newport Beach City Council Minutes November 8, 1999 INDEX . Tem Thomson abstained from voting on this item. 2. READING OF ORDINANCES AND RESOLUTIONS. Waive reading in full of all ordinances and resolutions under consideration, and direct City Clerk to read by title only. ORDINANCE FOR ADOPTION 3. Item removed from the Consent Calendar by Council Member Glover. RESOLUTIONS FOR ADOPTIONS 4. Item moved to the Public Hearing section. The item was noticed as a Public Hearing in the Daily Pilot on October 22, 1999. 5. RESOLUTION ORDERING FORECLOSURE ACTIONS ON SPECIAL Res 99 -73 ASSESSMENTS AND APPROVING SPECIAL COUNSEL C -3315 AGREEMENT. Adopt Resolution No. 99 -73 ordering foreclosure actions Special Assessments/ and approving the special counsel agreement between the City and Owen & Special Counsel Bradley, a professional corporation. (38) 6. CALIFORNIA INTEGRATED WASTE MANAGEMENT BOARD FIFTH Res 99 -74 CYCLE OPPORTUNITY GRANT. Adopt Resolution No. 99 -74 approving CA Integrated the submittal of an application to the California Integrated Waste Waste Management Management Board for a Local Government Use Opportunity Grant - Fifth Board Cycle. (41/44) CONTRACTS AND AGREEMENTS 7. BALBOA PIER CONCESSION AGREEMENT - RUBY S No report RESTAURANT GROUP (C -2326) (contd. from 10/25/99). Continue to November 22, 1999. 8. APPROVAL OF SUBDIVISION AGREEMENT FOR RESUBDIVISION Resub 1043 NO. 1043, NEWPORT COAST CHILD DEVELOPMENT PRESCHOOL Newport Coast AND ST. MATHEW S CHURCH SITE. 1) Approve the improvement plans Child Development and specifications and accept the public improvements constructed in Preschool and conjunction with Resubdivision No. 1043; and 2) authorize the City Clerk to St. Matthew's release the $18,000 faithful performance surety and $18,000 labor and Church material surety in the form of a Bank Set -Aside Letter with Northern Trust (84) Bank dated October 18, 1999. 9. SEWER AND STORM DRAIN LINING PROJECT - AWARD OF C -3271 CONTRACT (C- 3271). 1) Approve the plans and specifications; 2) reject Sewer and the low bid of G.B. Cooke, Inc. as being non - responsive; 3) award the Storm Drain contract (C -3271) to the second low bidder, Insituform Technologies, Inc., for Lining the total bid price of $170,001.64, and authorize the Mayor and the City (38) Clerk to execute the contract; and 4) establish an amount of $10,000 to cover the cost of unforeseen work. 10. OIL FIELD • OPERATION CONTRACT RENEWAL (C- 2428). Approve C -2428 Volume 53 - Page 68 City of Newport Beach City Council Minutes November 8, 1999 an agreement modification extending the term by two years for Sampson Oil Company to operate and maintain City -owned oil and gas production facilities and authorize the Mayor and the City Clerk to execute the Modification of Agreement on behalf of the City. 11. ENCROACHMENT AGREEMENT FOR CONSTRUCTION AND MAINTENANCE OF PRIVATE IMPROVEMENTS WITHIN THE OCEAN BOULEVARD PUBLIC RIGHT -OF -WAY ADJACENT TO 3625 OCEAN BOULEVARD, CORONA DEL MAR (EP99409). Approve the application subject to: 1) execution of an Encroachment Agreement for non- standard improvements and authorize the Mayor and City Clerk to execute the agreement and authorize and direct the City Clerk to have the agreement recorded with the Orange County Recorder; 2) an Encroachment Permit issued by the Public Works Department; and 3) a Building Permit issued by the Building Department. MISCELLANEOUS ACTIONS 12. PLANNING COMMISSION AGENDA FOR NOVEMBER 4, 1999. Receive and file. 13. UNSCHEDULED VACANCY ON THE CITY ARTS COMMISSION. Confirm the nomination of Lila Crespin and Tom Staple to fill the unscheduled vacancy created by the resignation of Pat Brubaker and schedule the appointment to be made on November 22, 1999. 14. BUDGET AMENDMENT (BA -022) TO INCREASE REVENUE ESTIMATES AND APPROPRIATIONS TO COVER SUMMER DAY CAMP EXCURSION EXPENSES NOT BUDGETED FOR THE FY 99/00 BUDGET ($1,076.80). Approve BA -022. 15. ACCEPTANCE OF THE GRANT DEED AND EASEMENT AGREEMENT FOR THE SALT -WATER MARSH BETWEEN BAYVIEW WAY AND SAN DIEGO CREEK SOUTH OF FLETCHER JONES MOTOR CARS FROM THE TRANSPORTATION CORRIDOR AGENCIES (TCA). 1) Authorize the Mayor and the City Clerk to execute the Grant Deed and Easement Agreement; and 2) direct the City Clerk to have the Grant Deed and Easement Agreement recorded with the Orange County Recorder. 16. Item removed from the Consent Calendar by Council Member Ridgeway. 17. Item removed from the Consent Calendar by Council Member Glover. 18. Item removed from the Consent Calendar by Council Member Ridgeway. • Motion by Mayor Pro Tern Thomson to approve the Consent Calendar, except for those items removed (3, 16, 17 and 18), and noting the abstentions by Debay and Thomson on Item No. 1, the continuation of Item No. 7 and the Volume 53 - Page 69 INDEX Oil Field Operation (38) EP 99 -409 Encroachment Agreement/ 3625 Ocean Blvd. (65) Planning (68) Arts Commission Vacancy (24) BA -022 Summer Day Camp Excursion (40/62) Grant Deed/ Easement Agreement/ Salt -Water Marsh TCA (73) City of Newport Beach City Council Minutes November 8, 1999 discussion of Item No. 4 to take place during the Public Hearing section. INDEX The motion carried by the following roll call vote: Ayes: Adams, Glover, Thomson, Debay, Ridgeway, Noyes, Mayor O'Neil Noes: None Abstain: None Absent: None ITEMS REMOVED FROM THE CONSENT CALENDAR 3. CORPORATE PLAZA — A REQUEST FOR PC TEXT AMENDMENTS Ord 99 -27 TO INCREASE THE PERMITTED SQUARE FOOTAGE 22 Corporate Plaza/ ENTITLEMENT IN THE CORPORATE PLAZA PLANNED Amendment 889 COMMUNITY BY TRANSFERRING APPROXIMATELY 45,000 (94) SQUARE FEET OF EXISTING ENTITLEMENT FROM FASHION ISLAND AND BLOCK 600 OF NEWPORT CENTER IN CONJUNCTION WITH THE CONSTRUCTION OF A NEW OFFICE BUILDING. Council Member Glover stated that she had received some phone calls about the parking at 22 Corporate Plaza and that the real estate agent said he had spoken to Associate Planner Myers about the issue. She asked who determines the parking ratios and Planning Director Temple responded that they are governed by the planned community text. She added that the common area parking lot is looked at since very few of the buildings have their own on -site parking. When asked how the parking ratio at 22 Corporate Plaza compares to those on Mariners Mile, Planning Director Temple stated that the parking at the Corporate Plaza site is established on a pool formula with the ratios being reduced as the planned community gets larger. She added that this is common in the airport area and Newport Center. In response to Council Member Glover's question about ratio comparisons, Planning Director Temple stated that it depends upon the size of the development but that additional parking is required with new development. Council Member Glover stated that she thought the parking ratios were common throughout the City. Motion by Council Member Noyes to adopt Ordinance No. 99 -27. The motion carried by the following roll call vote: Ayes: Adams, Thomson, Debay, Ridgeway, Noyes, Mayor O'Neil Noes: Glover Abstain: None Absent: None 16. MARINAPARK REQUEST FOR PROPOSALS (RFP). C -3316 Marinapark Council Member Ridgeway stated that he understands that the City (38) Manager is looking for the Council's direction on the City Project Goals, as listed in the staff report. He also suggested that Council Policy F -7, Income Property, be included as an attachment to the Request for Proposals (R.FP). Volume 53 - Page 70 11 0 C City of Newport Beach City Council Minutes November 8, 1999 is Motion by Council Member Ridgeway to approve the RFP for distribution incorporating Council Policy F -7, Income Property, as an attachment. Referring to the Form of Disposition in the staff report that states that the City would accept separate proposals for portions of the property, Council Member Glover stated that she would prefer a management team approach to the entire property. Council Member Ridgeway stated that there are fifty -eight separate leases in the mobile home park. Council Member Glover stated that the management team that runs the mobile home park, however, could manage the entire property. Paul Curtis, 215 E. 15th Street, Commander American Legion Post 291, began by thanking the City Council for extending the lease of the American Legion for one year, at its previous meeting. He stated that Post 291 was recently honored as the Yacht Club of the Year. Mr. Curtis stated his support for Council Member Ridgeway's motion, and he said that there is historical value to the American Legion property. He said 794 members live in the City of Newport Beach and that the American Legion is an asset to the community. Mr. Curtis understands the City's need to generate revenue • from the property, and he requested that Council Policy F -7 be attached to the RFP. He said the American Legion continues the desire to work with the City in creating a more desirable community. For Council Member Glover, City Attorney Burnham defined income property as property that the City owns or controls, which generates revenue to the City. He said this would include the tideland properties. Council Member Adams confirmed with Council Member Ridgeway that Council Policy F -7 would be attached as an information item only, and would not be an actual part of the RFP. The motion carried by the following roll call vote Ayes: Adams, Glover, Thomson, Debay, Ridgeway, Noyes, Mayor O'Neil Noes: None Abstain: None Absent: None 17. REQUEST FOR PROPOSALS — VISITOR INFORMATION KIOSKS. Council Member Glover asked if the location of the kiosk had been determined. Deputy City Manager Kiff stated that the location mentioned in the staff report, at McFadden Square, is only a suggestion. He added that the location can be determined when the item returns to the City Council for . final selection from the proposals submitted. Motion by Council Member Glover to authorize staff to issue a Request Volume 53 - Page 71 INDEX Visitor Information Kiosk System RFP (52) City of Newport Beach City Council Minutes November 8, 1999 10 for Proposals (RFP) for the development of a Visitor Information Kiosk system and to return to the City Council with a recommended vendor at a future date. The motion carried by the following roll call vote Ayes: Adams, Glover, Thomson, Debay, Ridgeway, Noyes, Mayor O'Neil Noes: None Abstain: None Absent: None BALBOA YACHT BASIN. Council Member Debay stated that the item needed to be removed from the Consent Calendar because the staff recommendation included an alternative. She added that the pros and cons of the City continuing to manage the basin should also be discussed, as well as what private organizations are interested in submitting proposals. Council Member Ridgeway stated that the broader policy issue before the City Council is the decision about whether to privatize City services, such as a yacht basin. He said that recommending the use of the RFP process is assuming that the privatization issue has been answered. He suggested that a sub - committee study might be more appropriate. Council Member Ridgeway added that he doesn't understand the need to privatize the management of the basin, a job that shouldn't be that difficult. He stated that the City is doing a good job already, at minimal cost. City Manager Bludau stated that the RFP process will provide the City with what alternatives might be available regarding the management of the basin. He stated that the decision whether to privatize could be made once this additional information is provided. Richard Stevens, 19 Monaco, BellPort Group, referred to the letter from the Balboa Basin Yacht Club which speaks against the award of a contract to the BellPort Group. He said that the BellPort Group believes it can operate the basin better and guarantee a higher profit. He feels that the service to the marina tenants and visitors of the harbor could also be increased. Mr. Stevens stated his belief that much could be done to make the harbor a more vital element for all citizens. He stated that the BellPort Group has had success in saving money at other marinas and that many municipalities are privatizing assets, such as marinas. He stated his support for City Manager Bludau's comment that soliciting an RFP doesn't bind the City in any way, but could provide new ideas and concepts. Council Member Glover clarified that the RFP is only a solicitation for the management of the property and that the City would remain the owner. Council Member Ridgeway requested that the letter received from the Balboa Basin Yacht Club be made a part of the record. Mike Jacobs, 7633 E. Hollow Oak Road, Anaheim, Commodore, Balboa Basin Volume 53 - Page 72 INDEX Balboa Yacht Basin (51) • 0 0 City of Newport Beach City Council Minutes November 8, 1999 Yacht Club, stated that he is the author of the letter mentioned previously. He stated that he is confused by whether the City is looking to privatize the basin or if it is only looking for management alternatives. Mr. Jacobs stated that he represents the membership of the Balboa Basin Yacht Club, which represents about one third of the slip rentals in the basin. He stated that the club members are strongly opposed to the privatization of the marina, and feel that the City has done an extraordinary job in managing the basin since 1981. He concluded by stating that the need for competition exists between marina operators and that an increase in rates could result in a decline in occupancy. Council Member Ridgeway confirmed with Mr. Jacobs that the current cost is $15.00 per foot for boats of 39-foot length or less, and $16.00 to $16.50 per foot for boats 40 feet and over. Council Member Ridgeway stated that the City's maintenance and operation costs in the previous year were $43,798, and the revenue exceeded $1,321,000. Sherry Bower, 1430 Serenade, tenant in the basin and member of the Balboa Basin Yacht Club, stated that she is not in support of a third party management firm. Additionally, she stated that if the City allows an incentive -based fee, it is entitling a vendor to experiment with rents. She stated that this could drive occupancy and profits down, because a vendor would have nothing to lose. She stated that the real estate benefits and risks should remain with the owner, and not a third party. She concluded by stating that managing the marina is not difficult and should remain with the City. Joe Bairian, 328 Catalina Drive, tenant at Balboa Yacht Basin, stated that the City should notice the tenants about the proposed changes. He suggested that the City should take a more active role in the management of the harbor and that it would give the City a closer feel of what the management issues are. He said the City's current cost to manage the marina is reasonable and the occupancy is almost 100 %. He said if the City wants to increase revenue, it could increase rates and wouldn't need a third party management firm to do this. He concluded by stating that the City has done a great job and that privatization would eliminate competition. Council Member Noyes confirmed with Deputy Chief Melum that the loan payback to the State is $250,000 per year, but has never been considered as a part of the operational cost. Deputy Chief Melum said that if a private contractor managed the basin, the City would still continue to make the loan payment. In response to Council Member Noyes' question, City Manager Bludau stated that managing the buildings at the basin would be a part of the RFP, but that it currently does not include redevelopment of the facilities. Council Member Noyes asked about the deferred maintenance at the marina. Deputy Chief Melum stated that there is currently no deferred maintenance but that there are things that need to be addressed, like the electrical connections between the land and the dock. He added that a report, prepared eight months ago, outlined some of the work that needs to be done. Volume 53 - Page 73 INDEX City of Newport Beach City Council Minutes November 8, 1999 INDEX He further confirmed that the floats have been checked and are not in need of repair at this time. Council Member Glover confirmed with Deputy Chief Melum that the operational expenses of $131,683 in fiscal year 1997.1998 included the cost to fill vacant slips and is covered in the current marina manager's salary. Deputy Chief Melum further confirmed that the $87,885 for salaries and benefits includes the on -site manager as well as some part-time staffing. Deputy Chief Melum clarified for Council Member Glover that the restaurant and marine part store are individual leases, with separate lease payments made to the City. Council Member Glover further confirmed with Deputy Chief Melum that the total maintenance and operations cost budgeted to the manager is $43,798, and that $131,683 truly represents the total operational expenses. Council Member Glover stated her concern also for the several maintenance issues that had been previously identified. Deputy Chief Melum stated that the City is in the process of addressing the items that were listed in the study. He said the most major item was the electrical work that needs to be done and it is expected to cost between $15,000 and $20,000. Council Member Glover stated that she supports the City going through the RFP process to ensure that the City is utilizing the property as it should. Council Member Ridgeway stated that income property is usually analyzed pre -debt service. He said that with a debt service of $250,000, the basin's total net revenue is approximately $950,000. He stated that an on -site manager gives the City someone very close to the project. He also agreed that the report is confusing by mentioning privatization when the City is only intending to compare management proposals with current management. Motion by Council Member Ridgeway to authorize the City Manager to use the RFP process for management of the Balboa Yacht Basin, without incentives being provided to the managers. Council Member Ridgeway agreed that the City should stay close to the operation of the harbor. The motion carried by the following roll call vote: Ayes: Adams, Glover, Thomson, Debay, Ridgeway, Noyes, Mayor O'Neil Noes: None Abstain: None Absent: None PUBLIC COMMENTS William Sadowski, 458 Vista Trucha, introduced his daughters, Gabriel and Katrina, whom he said are learning to play the piano. Mr. Sadowski said it Volume 53 - Page 74 0 0 0 0 0 0 City of Newport Beach City Council Minutes November 8, 1999 got him thinking about the need for a nice concert facility in Newport Beach. He presented an illustration of his idea for Upper Newport Bay, which he called the Newport Beach "Sunset Across the Bay" Amphitheater. It showed an amphitheater on the water, near the Coast Highway bridge. He suggested that it could put Newport Beach on the map as a location with a premier concert facility. Mr. Sadowski said the facility could be designed to close during bad weather or when not in use. He concluded by stating that he just wanted to plant the seed about his idea. Mary Barrett Blake, 3848 Campus Drive, Suite 209, Alliance to Rescue Crystal Cove, stated her concern for what is happening at Crystal Cove State Park and Beach with regards to the new development in the area. She said that the runoff from the Pelican Hills Country Club, the Marriott timeshare suites, and the Crystal Cove development and shopping center run into two creeks, Los Trancos and Muddy Creek. She stated that in the last five years, there has been serious destruction to the biological significance of the Irvine Coast Marine Refuge. Ms. Blake presented several photos that showed the change in the area. She said the creeks used to be dry, but soil has now been moved from its natural location and debris has been washed into the creek, contaminating the marine refuge. She asked for the City's attention to the matter. She said the Alliance is working with Coastal Commission, the Sierra Club and the Surfrider's Foundation. Mayor O'Neil stated that it is a valuable reserve, but not under the City's jurisdiction. Council Member Noyes suggested that Ms. Blake and the Alliance also consider working with the Orange County Coastal Coalition. He said their next meeting is November 18, 1999, and he would attempt to have her item placed on the agenda. Susan Skinner Caustin, 2421 E. 16th Street, #2, stated that she recently attended a meeting regarding the Dunes expansion, which included a presentation by Senior Planner Alford on the traffic study that was performed for the expansion. Ms. Caustin asked that the City Council pay very close attention to the traffic study and the numbers presented, when the Dunes expansion comes before them. She stated that the Dunes has already been approved for a 275 -room hotel and approximately 8,000 square feet of conference space, but that they are now asking for an increase in that to a 600 -room hotel and 55,000 square feet of conference space. Ms. Caustin stated that Senior Planner Alford told her that the original expansion was expected to generate 4,000 trips per day through the Bayside /Coast Highway intersection, but that the additional expansion would only generate 4,800 trips. She stated that this intersection is critical and she asked that the City Council pay very close attention to the numbers and make sure they believe them. PUBLIC HEARINGS 4. HOAG HOSPITAL VARIABLE RATE DEMAND REVENUE BONDS. Mayor O'Neil stated that he would not be voting on the item due to a conflict Volume 53 - Page 75 Res 99 -72 Hoag Hospital/ Revenue Bonds City of Newport Beach City Council Minutes November 8, 1999 of interest. " Mayor Pro Tem Thomson stated that the item had been discussed at the Study Session earlier in the day. Mayor Pro Tem Thomson opened the public hearing. There being no testimony, Mayor Pro Tem Thomson closed the public hearing. Motion by Council Member Adams to approve the sale of not to exceed $125 million of City of Newport Beach Variable Rate Demand Revenue Bonds (Hoag Memorial Hospital Presbyterian), Series 1999; adopt Resolution No. 99.72 authorizing the issue, the Loan Agreement, Indenture, Preliminary Official Statement (including Appendix A) and the Bond Purchase Contract, and authorize City staff to take the necessary steps to close the bond sale. City Attorney Burnham stated that the bonds are issued pursuant to an ordinance that states that the bonds are to be repaid solely from the assets or revenue from Hoag Hospital. He stated that the language that links the issuance of the bonds to the ordinance was not included in the resolution and should be. He recommended that the resolution be modified to make it clear that the bonds will be issued in strict compliance with the ordinance. Council Member Adams amended his motion to include the modification to the resolution. The amended motion carried by the following roll call vote Ayes: Adams, Glover, Thomson, Debay, Ridgeway, Noyes Noes: None Abstain: Mayor O'Neil Absent: None 19. GENERAL PLAN AMENDMENT 99 -2(E) — REQUEST TO EXPAND THE SECOND FLOOR OFFICE AREA IN AN EXISTING BUILDING BY APPROXIMATELY 1,000 SQUARE FEET TO ALLOW THE RELOCATION OF A SMALL SPORTS MEMORABILIA MUSEUM, KNOWN AS THE NEWPORT SPORTS COLLECTION FOUNDATION, INTO THE BOTTOM FLOOR OF THE BUILDING. THE PROJECT INVOLVES THE APPROVAL OF A GENERAL PLAN AMENDMENT TO PERMIT ADDITIONAL DEVELOPMENT SINCE THERE IS NO ADDITIONAL FLOOR AREA ALLOCATED IN THIS PART OF NEWPORT CENTER. Planning Director Temple stated that the item was considered and approved by the City Council at its meeting of September 27, 1999, but since that time, it was realized that there was miscommunication between staff and the applicant. Planning Director Temple stated that the action at the current meeting would allow an increase in the allowed floor area from 882 square feet to 1000 square feet. Volume 53 - Page 76 INDEX (40) GPA 99.2(E) Res 99 -75 Newport Sports Collection Foundation (45) 11 L-1 9 City of Newport Beach City Council Minutes November 8, 1999 INDEX Motion by Council Member Glover to rescind Resolution No. 99 -69 and adopt Resolution No. 99 -75 for GPA 99 -2(E). Mayor O'Neil opened the public hearing. There being no testimony, Mayor O'Neil closed the public hearing. The motion carried by the following roll call vote: Ayes: Adams, Glover, Thomson, Debay, Ridgeway, Noyes, Mayor O'Neil Noes: None Abstain: None Absent: None 20. APPEAL OF THE DENIAL OF AN ENCROACHMENT PERMIT FOR Encroachment THE CONSTRUCTION OF A CURB CUT ADJACENT TO 422 Permit for REDLANDS AVENUE IN THE NEWPORT HEIGHTS AREA. Curb Cut/ 422 Redlands Ave. This item was not discussed because the appellant, Mr. Will Higman, pulled (65) the appeal prior to the start of the meeting. CURRENT BUSINESS 21. PROPOSED REVISIONS TO COUNCIL POLICY A -6, OPEN Policy A -6/ MEETING POLICIES, TO CHANGE REGULAR COUNCIL Change of MEETINGS TO THE SECOND AND FOURTH TUESDAYS. Regular Council Meetings to Mayor O'Neil stated that the proposed revision was reviewed by the City Tuesdays Council at a recent off -site retreat. He stated that it was discussed that the (33169) Tuesday night meetings would give more time for the public and the City Council to prepare for the meetings. Motion by Council Member Noves to approve the proposed revisions to Council Policy A -6 changing the Regular Council meetings to the second and fourth Tuesdays of each month, except in December when the only meeting will be held on the second Tuesday, effective in January of 2000. City Manager Bludau confirmed that the change would take place at the first meeting in January 2000. The motion carried by the following roll call vote: Ayes: Adams, Glover, Thomson, Debay, Ridgeway, Noyes, Mayor O'Neil Noes: None Abstain: None Absent: None 22. UNSCHEDULED VACANCY ON THE PLANNING COMMISSION AND Planning APPOINTMENT BY MAYOR OF AN AD -HOC APPOINTMENTS Commission COMMITTEE. Vacancy (24) Volume 53 - Page 77 City of Newport Beach City Council Minutes November 8, 1999 Motion by Mayor U'Neil to accept the resignation of Mark Hoglund from the Planning Commission effective immediately (term expires June 30, 2000); and to direct the City Clerk to advertise the vacancy pursuant to Council Policy A -2. Mayor O'Neil appointed Council Member Noyes, Council Member Adams and Mayor O'Neil to serve on the Ad -Hoc Appointments Committee. The motion carried by the following roll call vote Ayes: Adams, Glover, Thomson, Debay, Ridgeway, Noyes, Mayor O'Neil Noes: None Abstain: None Absent: None MOTION FOR RECONSIDERATION -None. ADJOURNMENT - 8:20 p.m. The agenda for the Regular Meeting was posted on November 3, 1999, at 3:00 p.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. City Clerk Recording Secretary Mayor Volume 53 - Page 78 INDEX E u