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HomeMy WebLinkAbout01 - Minutes of 03-10-2000 & 03-14-2000March 28, 2000 Agenda Item No. 1 CITY OF NEWPORT BEACH City Council Minutes Special Meeting March 10, 2000 - 8:30 a.m. ROLL CALL Present: Thomson, Adams, Debay, Ridgeway, O'Neil, Mayor Noyes Absent: Glover (excused) CURRENT BUSINESS 1. REQUEST BY THE PROPONENTS OF THE GREENLIGHT INITIATIVE TO PLACE THE PROPOSED CHARTER AMENDMENT ON THE JUNE 6, 2000 BALLOT. City Attorney Burnham expressed the opinion that there is a serious risk of litigation if Council were to call a special election for June 6 since that date is not an established election date. However, there is a conflict in the Elections Code because an argument can be made that Council has the authority to call a special election on any date, but an argument can also be made to the contrary. He added that the Elections Code clearly indicates a preference that special elections be conducted on established election dates. Regarding costs, City Manager Bludau indicated that City Clerk Harkless spoke with the Registrar of Voters office and was told that there would not be a cost savings if the City joined the school district on the June 6 ballot. Council Member Debay noted that the staff report indicates that the estimated cost to the City is between $1.50 to $2.00 per registered voter ($69,000 to $93,164 total). Mr. Burnham pointed out that the school district called this election pursuant to provisions in the Education Code that deal specifically with school bond measures, not the Elections Code which governs Council's actions with the exception of Charter provisions which is silent on the issue of special elections. He emphasized that the school district has special powers and rules that apply to school bond elections. In response to Mayor Pro Tern Adams' questions relative to the contract with John Douglas of The Planning Center, Mr. Bludau explained that Council discussed getting factual information to the public so that they can make up their own minds. He indicated that he met with Mr. Douglas who has started gathering data, but the work will not be completed for approximately six weeks. Tom Hyans, Greenlight initiative proponent/signatory, thanked Council for meeting this morning. He expressed the opinion that the only thing Council has to consider outside of the legalities is the cost. He stated that he attended the Planning Commission meeting last night in which the Dunes project was discussed and that the Commissioners, who are experts, had Volume 53 - Page 225 INDEX Greenlight Initiative (39) City of Newport Beach Special Meeting Minutes March 10, 1999 difficulty understanding the traffic analysis. He indicated that the proponents could use this time to clarify the confusion about the initiative, but believed that the proponents have some benefits over the developers because the developers have to deal with uncertainties about the initiative. He noted that voting on this issue soon also has its benefits. INDEX Dan Purcell, 600 Acacia Avenue, thanked everyone for coming today. He stated that he works with the Corona del Mar Residents Association but that he is speaking as an individual. He indicated that he would not like to see this issue be placed on the June 6 ballot because more dialogue needs to be established. He reported that Council Members O'Neil and Thomson attended the Association's meeting and believed that there is an opportunity to gauge what the public is doing and to assess what is occurring in the City and with the Planning Commission. He expressed the opinion that the initiative is an anti -City Council and Planning Commission approach at trying to make a voice. He believed that there are other ways to approach the issue of growth and traffic without resorting to these types of measures. He hoped that this issue remains on the November ballot. Richard Luehrs, CEO of the Newport Chamber of Commerce, stated that you do not have to be an expert on the Greenlight initiative to know that it is a complex issue that has very far - reaching implications. He indicated that the Chamber is continuing their analysis and, once completed, believes that it is very important to disclose the findings to the public. He pointed out that the City only has about a 15 to 20 percent voter turnout during special elections, but can expect over 75 percent of the voters turning out during the presidential election in November. Mr. Luehrs stated that it makes sense to have the greatest number of residents weigh in on the issue and share their opinions, but that it does not make sense to force an issue in a shorter timeframe with fewer number of registered voters casting a vote. He urged Council to stay their course and leave the initiative on the November ballot. Allan Beek reported that Phil Arst, one of the proponents, is out of the State and cannot be here. Mr. Beek thanked Council for meeting this morning to consider the request. Council Member O'Neil noted that the City Attorney raised the question regarding the legality of placing this on the June 6 ballot; there is no cost savings to the City; the economic and financial analysis by Mr. Douglas is not ready at this time; the City does not know what impacts, if any, this would have on the school district's bond issue; it is very important to have a Citywide vote that obtains the greatest number of input from voters; and the proponents do not seem to have the enthusiasm to do this. He expressed the opinion that today's meeting is worthwhile and offers another opportunity to look at the Greenlight initiative, but that there does not seem to be any compelling reasons why Council would need to move the measure to the special election and that doing so would not be a prudent move at this time. Motion by Council Member O'Neil to deny the request and direct the City Clerk to continue with the process for the placement of this Charter Amendment (the " Greenlight" initiative) on the ballot for the General Municipal Election to be held on November 7, 2000 as adopted by Resolution Volume 53 - Page 226 City of Newport Beach Special Meeting Minutes March 10, 1999 INDEX No. 2000 -5 on January 8, 2000. Council Member Ridgeway stated that his reasons for why he cannot support having this on a special election includes the cost; the small percentage of voter turnout for special elections; lack of information; and a need for more dialogue and debate. He pointed out that the Newport Center projects have been withdrawn and that the City is working with staff to move forward with a General Plan update for the land use and circulation elements. He emphasized that he will see to it that the General Plan update occurs to the best of his ability. He pointed out that the solution that the proponents requested the City do is moving forward and will continue to move forward. Regarding the school district bond, Council Member Ridgeway reported that he has been working hard over the last 4.5 years on this issue, helped form a foundation to raise money for Newport Elementary School, and begged the school district to move forward with a bond issue. He stated that he was disheartened and saddened that Proposition 26 lost, but emphasized that he will not do anything to interfere with the school bond issue and, therefore, will support the motion to deny a special election. Council Member Thomson requested and received clarification from Mr. Burnham that there was a chance that the results of the election could be invalidated if the City chose to have the election on June 6. He reported that Charter amendments and Charter amendment proposals differ from almost every other type of measure that is considered by the voter. In response to Council Member Thomson's statement, Mr. Burnham expressed the opinion that it is not fair to say that an election can be held at anytime as long as the correct number of signatures is gathered and reiterated that the school district has special legislative authority to set school bond elections pursuant to provisions of the Education Code. Regarding setting a general plan amendment election next year in the event the Greenlight initiative is approved, Mr. Burnham indicated that the issue would not be a Charter amendment at that time but, in essence, just a vote that is required by the Charter. He reiterated that there is a strong indication in the Election Code that, because of the importance of Charter amendments, these elections should be set on established election dates with a preference to have elections in November the first Tuesday after the first Monday of even - numbered years. Council Member Debay indicated that she does not support moving the election to June because it is important to be educated and to wait for Mr. Douglas' research which will look at land use ramifications, economic impacts, and regional impacts on traffic. She pointed out that people look for alternative driving routes when morning traffic is at a standstill on the 405 Freeway and noted the impact this has on Pacific Coast Highway. She expressed hope that the City is counting the amount of cars that drive straight through the City without stopping. She indicated that she will be meeting with Mr. Douglas to ask him about some of the impacts that the region puts upon the City. In order to do all these things, she emphasized that he will need time to complete the report and that Council will need time to digest and share the report with the citizens. Volume 53 - Page 227 City of Newport Beach Special Meeting Minutes March 10, 1999 The motion carried by the following roll call vote: Ayes: Adams, Debay, Ridgeway, O'Neil, Mayor Noyes Noes: Thomson Abstain: None Absent: Glover !l013 Mr. Bludau clarified that Mr. Douglas' task is to look at the 49 statistical areas over the past 10 years to determine each of the area's traffic, housing, and square footage capacity. He added that the implications of the findings will have to come after the study is completed and clarified that Mr. Douglas is not going to make any inferences relative to the impacts of his study. His report will be the starting point and then the City will proceed from there. Mr. Bludau indicated that General Plan amendment approval dates can be included in the report, that the report will be placed on an agenda once completed, and the report will be made available to the public as soon as the staff report is available. PUBLIC COMMENTS — None ADJOURNMENT — 8:58 a.m. * * * * * * * * * * * * * * * * * * * * * * * * * * * * * ** The agenda for the Special Meeting was posted on March 9, 2000 at 7:50 a.rrL on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. City Clerk Recording Secretary Mayor Volume 53 - Page 228 CITY OF NEWPORT BEACH City Council Minutes Study Session DRAFT March 14, 2000 - 4:00 p.m. INDEX ROLL CALL Present: Glover, Adams, Debay, Ridgeway, Thomson, Mayor Noyes Absent: O'Neil CURRENT BUSINESS 1. CLARIFICATION OF ITEMS ON THE CONSENT CALENDAR. In reference to Item #8, Construction Site Fencing and Screening Requirements, Council Member Debay asked if there would be exceptions to the fencing. She stated that fencing on smaller lots could eliminate access to a project or cause a hardship. City Manager Bludau stated that an answer would be provided at the evening meeting. Council Member Debay stated that she wanted to make sure that getting an exception wouldn't be too difficult. Council Member Debay also made a comment regarding Item #12, Ocean Front Street End Improvements, 60�h, 62 °d, Cedar, Walnut, and Lugonia Streets. She stated that there were seven streets remaining to be done and she confirmed with Public Works Director Webb that they would be completed over the next two years. Council Member Debay asked for assurance that the Ocean Front and Seashore encroachment fees would aid the undergrounding and sidewalk reconstruction in the area. Public Works Director Webb recalled that the City is obligated to spend the money in the West Newport area. Mayor Pro Tem Adams referred to Item #13, Bonita Canyon Sports Park, and pointed to the difference in figures for the base bid amount of $5,973,000 and the available funding amount of $5,957,000. He asked where the extra money would come from and if the base bid included a contingency. Public Works Director Webb confirmed that the base bid did include some contingencies and is only an estimate. He said that staff will know more after the formal bids are received, including what alternatives can be funded. 2. COUNCIL DISCUSSION OF GENERAL PLAN REVISION PLANNING PROCESSES AND POSSIBLE ROLE OF COMMUNITY SURVEY IN THE PROCESS. City Manager Bludau stated that at the City Council meeting of February 8, 2000, the processes for revising the general plan and conducting a community survey were discussed. He stated that, at the time, he suggested that a presentation be made on various surveys and the methods involved. Volume 53 - Page 229 General Plan Revision Planning (68) City of Newport Beach Study Session Minutes March 14, 2000 INDEX City Manager Bludau introduced Carolyn Verheyen of Moore Iacofano Goltsman, Inc. (MIG) and stated that her presentation would include the types of survey vehicles available, how surveys can work, how other communities have used surveys and what role surveys might play in general plan revisions. Ms. Verheyen began by providing a brief background on MIG. She stated that she heads up a service area in the firm called Management and Policy Planning Services, with a staff of about twelve people. Ms. Verheyen stated that they have been involved with a number of general plan update processes over the years. She cited an example in Pasadena where the general plan was actually a condition of the court settlement in a growth management initiative. She listed other cities and counties that MIG has worked with. Ms. Verheyen stated that they have also done quite a bit of visioning for a number of cities and counties, including a strategic visioning process that was just begun with Laguna Beach. Ms. Verheyen stated that she would provide an overview of community surveys and the role they can play in a general plan update. She stated that she also had a slide presentation to illustrate many optional techniques that the City could put together to engage the public in helping to develop a general plan. She encouraged the City Council to ask questions throughout her presentation, to discuss any of the ideas among themselves and to interact as much as desired. Council Member Ridgeway asked Ms. Verheyen to provide some background on herself and what visioning actually means to a City. She stated that MIG has people from a variety of backgrounds, but that her education background is in environmental psychology. She said this area combines psychology and the social sciences with planning and design, and the interaction between people and their environments. She said that MIG provides a complete background in the technical planning side as well as the community participation side. In response to the second part of Council Member Ridgeway's question, Ms. Verheyen stated that different communities define visioning in different ways, but MIG feels that it is a process for imagining the future. She stated that it can be as simple as a one -line vision statement to a full -page statement-that really paints a picture. Council Member Ridgeway asked what type of answer Ms. Verheyen would give if asked the same thing about quality of life. She stated that quality of life is also difficult to define and many communities are trying to give it substance and definition. She stated that it is interesting to engage people in the discussion, and to not assume that everyone knows or shares the same answer. She stated that finding out how the community envisions quality of life currently and into the future can be done through a disciplined process, such as presenting and debating statements that are contradictory or mutually exclusive. Council Member Debay stated that the City has some pressing issues, such as updating the housing element, which has a time deadline for completion. She asked if the survey could help with these critical issues in time. Council Member Debay also asked about the timing of the survey in regards to the Volume 53 - Page 230 City of Newport Beach Study Session Minutes March 14, 2000 INDEX initiative on the November ballot. Ms. Verheyen said that for the housing element, a survey should be designed that will take only ten to twenty minutes to complete and has very focused questions. She stated that for the initiative, a survey would probably be part of a larger process. She added that in her experience, if people are satisfied with the general plan as a document to guide future planning decisions, they don't need to plan by ballot box. Ms. Verheyen stated that the City has a very small window to gain the type of confidence and ownership in the general plan that is needed by the public. Council Member Glover stated that she feels it is important to hear from new voices about their visions for the future of the City. She cited examples of some of the long -time residents in her district who are now raising their children in the same neighborhoods they grew up in. Council Member Glover stated that these types of people have a lot of time vested in the community and she'd like to hear what their visions for the future are. Council Member Glover asked how these new voices can be heard since they are the future, more so than the older residents who might have more time to participate in the visioning process. Council Member Ridgeway asked about the confidence of the public in the general plan and their need to plan by the ballot box, in comparison to their confidence in the elected officials. Ms. Verheyen agreed that confidence in their elected officials is important and a more difficult issue to address. She stated that if the public understands that the general plan is a blueprint document which guides decision- making, they understand that the elected officials are held to its direction. She added that designing a general plan that everyone agrees upon gives the City the opportunity to create a compromise on a community -wide level. Council Member Ridgeway suggested that the City's general plan may not need revising. City Manager Bludau asked Ms. Verheyen to discuss Council Member Glover's earlier comments about engaging people who haven't been engaged in the past and getting their participation in the community visioning process. Ms. Verheyen agreed that it is a time commitment to attend a public workshop, but other techniques can be used such as web sites, newsletters with quick comment sheets or actually going to locations frequented by these people. Council Member Glover disagreed with setting up sites at outside locations. She stated that consensus among the entire community will be difficult to reach, but that each council member might determine the best methodology for their district and really work within their particular districts and villages. She said that once each council member gets a feel for their district, they could come together and try to make the appropriate decisions. Ms. Verheyen agreed that a tailored program within each district is a good idea, with the council members acting as the funnel to bring that information back to the group. Ms. Verheyen commented on a door -to -door survey done for Laguna Niguel and some other studies MIG assisted on for Newport Beach. She began her presentation by stating that surveys can be statistically valid and provide a Volume 53 - Page 231 City of Newport Beach Study Session Minutes March 14, 2000 INDEX read on what members of the community think on a variety of issues, if a sound methodology is used with a sampling plan and controls. She stated that surveys can also provide clear direction to decision makers, but shouldn't be used as the only source. She stated that the true value of surveys is that they can provide a representative cross section of opinions and preferences, rather than just hearing from a self- selected group at Council meetings or community workshops. Ms. Verheyen stated that one of the disadvantages of surveys is that people will often question the results, especially if a defensible methodology is not used. She said that the interpretation of the results should always consider the confidence interval and margin of error. She said that some surveys skimp on sample size, which creates a large margin of error. Other disadvantages of surveys are that they can be expensive, are limited if the topics are complex and can be subject to various types of bias. Ms. Verheyen stated that there is a lot more to sound survey research than careful sampling, but that careful sampling can make or break a survey. She said that the confidence level or interval should be considered, with 95% being the industry standard. This means that there is a 95% chance that the survey sample and the population from which it is drawn will look alike. Ms. Verheyen said margin of error is another important factor to consider, with plus or minus 3% to 5% being the industry standard. She stated that the error depends on the sample size not the population size, which is contrary to what many people believe. A sample size of 500 to 1,000 can be used to attain a small margin of error. She explained that a plus or minus 5% margin of error would mean that a 50/50 yes/no response to a question could represent an actual response of 45/55 if the population were polled. The key is to remember that a survey is never conclusive because the margin of error must be taken into consideration. Ms. Verheyen stated that samples can be obtained in a variety of ways. She stated that a major concern of sample size is choosing one that is large enough to be representative, that no important characteristic has been left unrepresented and that no subgroup differences are left out. She stated that sample size is not a function of population size, but that more respondents will reduce the margin of error and increase the confidence level. Council Member Ridgeway stated that Newport Beach has two cultures and asked how the sample would be chosen in this case. Ms. Verheyen stated that the population Citywide should be looked at and then the appropriate clusters should be considered, with samples drawn accordingly. She stated that Newport Beach will want a large enough sample size so that the margin of error is low at the sub - sample level, enabling comparison of the different areas in Newport Beach. Ms. Verheyen suggested a sample size of approximately 700, or 1,000 if it could be funded. Ms. Verheyen continued her presentation by stating that there are various methods that can be used to conduct surveys. She stated that the door -to- door intercept method is best when trying to obtain in -depth and complex information, produces high response rates and reduces self - selection bias. Volume 53 - Page 232 City of Newport Beach Study Session Minutes March 14, 2000 INDEX She said the disadvantages are people might be hesitant to participate and it can be an expensive method. Ms. Verheyen stated that telephone surveys are the most popular method, have the fastest turnaround time, provide good quality data for the money, are easy to administer and that quality control is good. She stated, however, that coverage might be lacking, and that interview length and complexity are limited. Ms. Verheyen stated that mail surveys are good for complex questions because maps and visuals can be used, and they are usually inexpensive and easy to administer. She stated that the disadvantages are that the response rate is low, self - selection bias is high because many people throw away the surveys and do not respond and data quality is hard to control due to incompleteness in filling out the survey on their own. Ms. Verheyen stated that there are some factors that can be built into surveys to insure that they will be successful. She listed these to include the use of rigorous scientifically valid methods, keeping it limited to ten to fifteen minutes, focusing on issues where there are distinct choices, providing adequate information to the respondent, including a few open - ended questions, and always citing the margin of error for the full sample as well as any sub - samples. Ms. Verheyen suggested that if Newport Beach uses a survey in developing its general plan update, the timing of the survey should be considered. She stated that if it is used early in the process, the City could receive information about satisfaction with quality of life, satisfaction with City services, major issues and concerns, and preferred policy direction. Council Member Glover asked if Ms. Verheyen was saying that the City might want to do a survey but not a visioning process when developing the general plan update. Ms. Verheyen agreed that it is an option, and that not all general plan processes involve a visioning element. She added that if the general plan is in fairly good shape, an extensive process does not need to be carried out. Ms. Verheyen stated that if the survey is used later in the general plan process, the City would have the option to look at more specific tradeoffs, policies, sites and issues. Ms. Verheyen continued her presentation by discussing other ways to obtain information. She stated that focus groups can be used for in -depth discussions, can be used prior to a survey, are good for complex issues and can be less expensive if just a few are done. She added that focus groups do not have strong statistical reliability and wouldn't take the place of open public forums. Ms. Verheyen stated that working groups or advisory committees are another option to use when going through the general plan update process. She explained that these groups explore planning issues and options over several meetings, usually with an application and appointment required to Volume 53 - Page 233 City of Newport Beach Study Session Minutes March 14, 2000 INDEX be a part of the group. She stated that this method can be labor - intensive for staff, but it can result in a lot of agreement and buy -in. Ms. Verheyen also listed community workshops and stated that they can be the mainstay of a community participation program. She said there are many creative ways to make community workshops productive and engaging and satisfying for the participants. It also provides the opportunity for the community to give input while listening to others. She said the workshops are usually comprised of a self - selected group, however. Ms. Verheyen said that graphic recording is a technique that can be used to provide a visual record and flow at a meeting. Ms. Verheyen listed community fairs, booths in public areas, vision festivals, community planning charettes, open houses, information displays, story buses, workshop kits and tours as other ways to provide large scale community events and opportunities for input. She stated that there are also various methods that can be used during meetings such as tradeoff games and electronic voting. Council Member Glover commented on the tradeoff games and her support of the concept. She specifically mentioned that it would be beneficial to look at options and have, for example, an economist available who would calculate the cost of the various decisions. City Manager Bludau asked about the number of people who could participate in the tradeoff games. Ms. Verheyen stated that MIG has conducted the games in a number of cities and in each case, they were very different games because the issues were different. She stated that Pasadena had small group breakouts at a public workshop with ten groups of eight playing the game. She said that it was also built into the workshop kit so that others could conduct similar games on their own. She said that the information from all the groups can then be submitted and analyzed together. She said it is a good way to look at impacts and benefits of a project, such as the new Dunes hotel proposal. Ms. Verheyen continued listing ideas that Newport Beach might want to consider in addition to surveys, which included youth outreach involvement, engaging the press with conferences and briefings, hotlines, web pages, visual presentations, videos, fact sheets or newsletters, and the actual documents that come out of the planning process. Mayor Noyes stated that he and City Manager Bludau attended a library visioning process the week prior. He said it was an interesting experience and he was surprised by the similar answers received from such a diverse group of people. He also commented about the different districts in the City, as mentioned earlier, and suggested that were really eleven different parts of the City. Mayor Noyes asked about the order in which things should be done referring to surveys, the visioning process, general plan update process, and staff and professional involvement. Ms. Verheyen said the questions should be identified and then the process can be built around it. She said that once the Volume 53 - Page 234 City of Newport Beach Study Session Minutes March 14, 2000 I NI O D/y questions are identified, the best mechanism to engage the community in providing the answers and their opinions can be determined. Mayor Noyes asked for a general overview of what various mechanisms cost. Ms. Verheyen stated that a couple of workshops could cost $10,000 to $12,000. Mail -out surveys cost between $12,000 and $15,000 for a sample size of approximately 500 to 600. She said that using a larger sample size so that sub - samples could be broken out would increase the survey cost to $16,000 to $20,000. Ms. Verheyen stated that a phone survey would probably cost between $25,000 and $35,000, and a door -to -door survey would cost approximately $30,000 to $40,000 or $45,000. She said the estimates are rough and other factors would affect the actual cost. Mayor Noyes asked how the questions are developed. Ms. Verheyen stated that she usually starts with an issues identification meeting, often with the City Council, where the topics are discussed. She said she then drafts the questions, comes back to the City Council and revisions or deletions are made based on priorities. She said that a couple of drafts are usually required before a pilot test is done with actual community members, followed by full -scale administration. Mayor Noyes asked how the issue of bias is dealt with. Ms. Verheyen stated that, for example, when dealing with bias in question wording, there are lots of guidelines for question wording to avoid a question that asks for more than one thing at a time or one that leads to a particular answer. She said that information should be provided regarding both advantages and disadvantages to keep the question objective. Ms. Verheyen added that the other types of bias can also be dealt with. Council Member Thomson asked how typical national surveys of 1,200 people or .002 of the population of voters, as mentioned earlier, can be translated to Newport Beach's sample size. Ms. Verheyen stated that the formula used to determine sample size is complex and population size is only one factor. She stated that 800 to 1,000 would probably be ideal for Newport Beach. City Manager Bludau asked about rules for when to use a survey, whether it's earlier or later in a process. Ms. Verheyen stated that when considering a general plan update process, later is usually more effective to test alternatives or policy direction. She said that if the City feels that it needs an earlier read on larger goals or policy direction, an earlier survey would be better. She added, however, that if the City feels there will be controversial choices later, the survey should be saved for later. She said that both surveys could also be used. City Manager Bludau asked if Ms. Verheyen had seen anyone use the two - survey method effectively. She stated that most entities do not have the budget for both in a general plan update process, and will usually use methods other than just surveys to obtain public input. Assistant City Manager Wood asked about the cost for tradeoff games. Ms. Verheyen responded by stating that they're approximately $12,000 to Volume 53 - Page 235 City of Newport Beach Study Session Minutes March 14, 2000 INDEX $15,000. She said this includes the development of the materials production of the supplies. Council Member Glover mentioned the Greenlight initiative and asked what Ms. Verheyen would use to illustrate the traffic and tradeoffs of a new project. Ms. Verheyen showed some materials used in actual land use tradeoff games. She said that assumptions were made from a transportation planner's expert opinion on the number of peak hour trips generated by each land use type. Council Member Glover stated her lack of understanding about how peak hours are determined and some of the initial assumptions that are made. Ms. Verheyen agreed that the planning issue can be complex and tradeoff games can be very enlightening for the participants, while others find that they are too simple and not based on reality. Council Member Ridgeway pointed out that it is unknown, even by economists, if jobs or housing came first. He then asked if the tradeoff games provide the ability to analyze the results of activity in the areas surrounding a City, regardless of what level of growth the City has. Ms. Verheyen stated that the transportation planners, economists, traffic specialists and land use planners that provide information for the tradeoff games know to include what's happening in the region, whether the City under study has no growth, minimal growth or full build -out. She added that there really is no such thing as no growth because adjacent communities affect the entire region. City Manager Bludau asked if MIG had the various experts on staff needed to conduct a tradeoff game on staff. Ms. Verheyen responded that MIG does not have all the experts on staff, but they do work with professionals to build in the other specialties. She added that MIG is primarily made up of land use planners, participation experts and community designers. At the invitation of Mayor Noyes, Barry Eaton stated that he has participated in approximately six general plan updates as a professional planner. He agreed that a community survey at the beginning is important. He said that even more important is what guiding group assists with the plan. Dan Purcell stated that he had been through a similar strategic planning process at a large community college during a strong economy in a growing community. He said the process trickled down from the top administration of the college and began with focus groups and then an appointed body of representatives. He said it then broke into a survey at the end, which he felt was beneficial and helped to clarify and reinforce the decisions made. Mr. Purcell asked about existing organizations in the community and what role they might play. Ms. Verheyen stated that existing organizations might be partly used in the focus group method where a representative cross section of the community is needed. She stated that an advisory committee can also be drawn from established groups, but should also include people who are not involved in organized groups. Ms. Verheyen added that the workshop kit can be used by established groups. She said the participation process should be designed to Volume 53 - Page 236 City of Newport Beach Study Session Minutes March 14, 2000 INDEX accommodate the voices of everyone. Mayor Noyes expressed his concern that there still doesn't seem to be clear direction on how Newport Beach should proceed. He asked if a consultant should be used from the beginning to develop the list of questions and priorities, or if the consultant should be brought in later during the process. Ms. Verheyen suggested that once the questions have been developed, it then might be a good time to bring in a consultant who can help with the optional ways of building a participation process to answer the questions. Council Member Glover stated that she has always felt that if the City can communicate properly with the citizens, the citizens could make a choice on the options they want to choose and the City Council would follow that direction. She said that it is important that a community clearly understand the tradeoffs of various choices. She specifically referenced reducing services when revenues are decreased. Mayor Pro Tem Adams asked who would be providing the leadership for the City's general plan update effort. He suggested that questions shouldn't be developed until the bigger issue of how the City is going to go about the process is decided. City Manager Bludau agreed that the City Council first needs to decide if it's committed to a general plan update, and then decide on a timeframe and a budget. Council Member Thomson agreed that the City Council should be out in the community and find out what people are thinking and concerned about. He said the City Council needs to be responsive to the community. Council Member Ridgeway thought Mayor Pro Tem Adams was more asking who would be managing the program on staff. City Manager Bludau responded that he would think the City Manager's office would manage the process, but he said he would first need to see what the process is going to be and how complex it is going to be. Council Member Ridgeway stated that the last general plan update was done in 1988. He asked about the legal obligation to review the general plan, like is done for the housing element and the circulation element. Planning Director Temple stated that the housing element is the only one that has firmly established deadlines and requirements for routine updates, however, State planning law advises that the others be reviewed every five years. Council Member Ridgeway asked about the norm among cities for reviewing their land use and circulation elements. Planning Director Temple stated that most communities do not update their various elements on a periodic basis. She said that updates usually come about because of changing circumstances or pressures from the outside. She added that twelve years is probably too long to wait for an update, however. Mayor Pro Tem Adams stated that there are a lot of expectations as to what will come out of the general plan update process. He suggested that possibly staff could present the general plan at some future study sessions, discuss each element specifically and what might need to be revised. He said that Volume 53 - Page 237 City of Newport Beach Study Session Minutes March 14, 2000 INDEX once the City Council and the public understand what the general plan is and what it has done, decisions can then be made on what might need to be changed. He suggested this as a logical starting point. He stated his concern that many people's expectations of what a general plan update will do may be unrealistic. Mayor Pro Tom Adams added that he thinks someone on staff needs to provide the leadership to educate the City Council and the public about the general plan. He suggested that if staff time is not available, maybe a consultant should be used. Council Member Ridgeway agreed with Mayor Pro Tem Adams' suggestion. He stated that a lot of discussion has taken place over the year on the land use, circulation and housing elements, and that's where the focus will likely remain. He stated that the visioning process on these elements can begin with the general plan update process as is being discussed. Mayor Noyes stated that it may be found that there is nothing wrong with any of the elements of the general plan. He asked which element would be easiest to tackle. Planning Director Temple stated that the housing element is already being reviewed, as required. She added that the Planning Department did begin a review of the general plan the year prior, per City Council recommendation, and that this material could be presented as a starting point. Council Member Debay confirmed with Assistant City Manager Wood that the housing element review is a priority. Assistant City Manager Wood added that the five -year plan for the block grant is being done first. Council Member Debay further confirmed that the deadline to update the housing element is the end of June with an extension expected for the end of December. She further confirmed that the housing element would be reviewed separate from the general plan update process. Council Member Ridgeway stated that the housing element doesn't need a visioning process and can be handled by staff and the City Council because it is driven by legal requirements and lack of compliance. Council Member Thomson asked if staff could develop a matrix that compares the size of buildings, road capacities, number of houses and developments, population and how they all work together. He said that a model would allow different theories to be tested. Assistant City Manager Wood stated that she didn't feel these resources were available in- house. She said that staff could address specific issues and questions, but doesn't have the capacity to pull it all together into tradeoff scenarios. Council Member Thomson suggested that models should already be available. City Manager Bludau stated that existing models may not work for specific projects and issues in Newport Beach. He said that the location of a project would change the tradeoffs and impacts. Council Member Thomson argued that planners and developers must know how much traffic is generated from various projects. Mayor Pro Tem Adams stated that traffic models are used. Mayor Noyes suggested that Mayor Pro Tem Adams' earlier suggestion to Volume 53 - Page 238 City of Newport Beach Study Session Minutes March 14, 2000 have an overall presentation of the general plan be conducted at a future study session. City Manager Bludau asked if the City Council wanted to concentrate on the housing, circulation and land use elements. Assistant City Manager Wood suggested that all of the elements be reviewed, referring to some that haven't been updated in so long they may not comply with current State law. Council Member Ridgeway agreed with Assistant City Manager Wood's suggestion, but wants the focus to remain on the three elements named. PUBLIC COMMENTS — None. ADJOURNMENT — 6:05 p.m. The agenda for the Study Session was posted on March 8, 2000, at 3:30 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 239 INDEX CITY OF NEWPORT BEACH City Council Minutes DRAFT Regular Meeting March 14, 2000 - 7:00 p.m. INDEX STUDY SESSION — 4:00 p.m. (Refer to separate minutes) CLOSED SESSION — 6:05 p.m CLOSED SESSION REPORT PRESENTED - None. RECESSED AND RECONVENED AT 7:25 P.M. FOR REGULAR MEETING ROLL CALL Present: Thomson, Glover, Adams, Debay, Ridgeway, O'Neil, Mayor Noyes Absent: None Pledge of Allegiance - Council Member Thomson. Invocation by Rev. Deacon Kathleen Adams, St. James Episcopal Church. Proclamation recognizing the Toshiba Computer Systems Group for sponsorship of the Toshiba Senior Classic Golf Tournament. Hank Adler, Jake Rohrer, and Jeff Purser thanked the City on behalf of Toshiba and the 1,200 volunteers. Mr. Adler reported that the event raised $1 million for Hoag Hospital. Council Member O'Neil thanked them for organizing this tournament each year and emphasized that the event brings publicity and notoriety to the City. Proclamation recognizing Leigh and Lucy Steinberg and the volunteers of Spirit Run. Mayor Noyes had all the volunteers and children introduce themselves. Council Member O'Neil reported that the Spirit Run was named this year after the Steinbergs who were the principal sponsors. He noted that Leigh was the keynote speaker at the Mayor's Dinner this year and recognized Leigh and Lucy for the charitable work they do in the City. Nadine Turner announced that they are ready to do the 18th Annual Spirit Run next year and hoped that everyone will join them. She stated that she appreciates all the community support they receive and announced that Newport Coast Elementary School will be on board next year as well. Oral report from Aviation Committee. Robert Shepherd, Aviation Committee Member, stated that Courtney Wiercioch of the County Board of Supervisors hired P & D Consultants of Orange to complete an Environmental Impact Report (EIR 573) concerning El Toro; and P & D Consultants hired K & M Consultants from Washington to do the trip analysis and Jefferson Samuelson of Colorado to do the FAR Part 121 Analysis. Both the analyses needs to be included in the EIR in order for the FAA to make a determination on whether El Toro is safe. Volume 53 - Page 240 City of Newport Beach City Council Minutes March 14, 2000 Regarding Runways 7 and 34, Mr. Shepherd stated that he spent time at P & D and they assured him that all FAA design guidelines and safety standards are met at El Toro. He indicated that he also spoke to a gentleman who is probably the foremost authority on aircraft performance who stated that El Toro is not a perfect airport but that it is above average in airport safety. Further, the worst day at El Toro is better than the best day at John Wayne Airport (JWA). Mr. Sheppard stated that he has 35 years flying experience as an airline pilot and 10 years flying Boeing 737s out of JWA. He questioned why John Russell, Airline Pilots Association Western Regional Safety Chairman, would not recommend takeoffs on Runways 7 and 34 (in his letter to the Board of Supervisors and Ms. Wiercioch), pointing out that the Airline Pilots Association has no in -house aircraft performance engineering department. He believed that Mr. Russell has been influenced by hundreds of letters and pilots from South County. He reported that EIR 573 studied Runways 7 and 34 with a maximum 4 knots of tailwind on Runway 7 and a maximum 7 knots of tailwind on Runway 34, and determined that they are safe under those scenarios and would be operational 96 percent of the time. He stated that Mr. Russell believes that Runway 7 would be unsafe but does not substantiate his reason. Regarding Mr. Russell's statement that certain takeoffs from Runway 34 will not clear Loma Ridge, Mr. Sheppard stated that pilots could turn away from the ridge or lighten the load to avoid hitting it. Mr. Sheppard expressed the opinion that Mr. Russell's comments are argumentative and seem to be influenced by another agenda. He reiterated that every scenario can be compensated by adjusting the weight. 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 Debay requested an update regarding the oil spill allocation be brought back at a future meeting. • Mayor Pro Tem Adams announced that the Friends of Harbors, Beaches and Parks provided Council with invitations to the Orange Coast River Park Concept Plan unveiling on Thursday, March 23, between 7:00 to 9:30 p.m. at the Costa Mesa Community Center (1845 Park Avenue). He invited everyone to attend. • Council Member Glover requested a report relative to how the City can place a measure on the November ballot that would make the Greenlight initiative inapplicable in certain areas of the City to protect them. • Council Member Thomson reported that he is a member of the Orange County Vector Control Committee and cautioned everyone that fire ants are currently in three areas of the City. He reported that the fire ants live in clay -like ground and not sand. If anyone comes in contact with the fire ants, he advised them to call Vector Control or Deputy City Manager Dave Kiff. • Mayor Noyes announced that the Community Emergency Response Team (CERT) is looking for participants from Balboa and Balboa Island for classes that begin on April 13. Those interested can contact Donna Boston at 644 -3109 for more information. Volume 53 - Page 241 City of Newport Beach City Council Minutes March 14, 2000 CONSENT CALENDAR READING OF MINUTES /ORDINANCES AND RESOLUTIONS MINUTES OF THE ADJOURNED REGULAR AND REGULAR MEETING OF FEBRUARY 22, 2000. Waive reading of subject minutes, approve as written and order filed. 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. RESOLUTIONS FOR ADOPTION 3. ADOPT RESOLUTION NO. 2000 -22 FOR ONE -HOUR PARKING IN FRONT OF NEWPORT ELEMENTARY SCHOOL. Adopt a resolution establishing a one -hour time limit from 9:00 a.m. to 5:00 p.m. on school days for parking along the south curb of Balboa Boulevard between 13Lh and 14ffi Streets. 4. ROLLERSKATING RESTRICTIONS AT THE ARCHES INTERCHANGE. Adopt Resolution No. 2000 -23 prohibiting rollerskating on certain streets and sidewalks; and direct staff to contact Caltrans to obtain authorization to install the appropriate signs on State property. 5. RESOLUTION OF SUPPORT FOR THE PACIFIC COAST TRIATHLON - 2000. Adopt Resolution No. 2000 -24 supporting the event to be held on July 23, 2000. 6. WATER QUALITY EDUCATION PLAN FOR NEWPORT -MESA STUDENTS. Adopt Resolution No. 2000 -25 relating to a Water Quality Education Plan for 5th grade students in the Newport -Mesa Unified School District. ORDINANCES FOR INTRODUCTION ORDINANCE DELETING - -- CONSTRUCTION SITE CLEANUP DEPOSIT SCHEDULE FROM CHAPTER 15.60 OF THE NEWPORT BEACH MUNICIPAL CODE. Introduce Ordinance No. 2000 -6 approving amendments to Sections 15.60.010 and 15.60.020 of the NBMC deleting schedules of construction site cleanup deposit amounts and make reference to schedules adopted by resolution of City Council and pass to second reading on March 28, 2000. 8. Removed at the request of Council Member Ridgeway. CONTRACTS AND AGREEMENTS 9. IRVINE AVENUE STREET RECONSTRUCTION (C -3204) - COMPLETION AND ACCEPTANCE. 1) Accept the work; 2) authorize the City Clerk to file a Notice of Completion; 3) authorize the City Clerk to release the Labor and Materials bond 35 days after the Notice of Completion has been recorded in accordance with applicable portions of the Civil Code; Volume 53 - Page 242 INDEX Res 2000 -22 One -Hour Parking /Newport Elementary School(85) Res 2000 -23 Rollerskating Restrictions (85) Res 2000.24 Pacific Coast Triathlon (6:2) Res 2000 -25 Water Quality Education Plan (51) Ord 2000 -6 Construction Site Cleanup (26) C -3204 Irvine Avenue Street Reconstruction (38) City of Newport Beach City Council Minutes March 14, 2000 INDEX Volume 53 - Page 243 and 4) release the Faithful Performance Bond six (6) months after Council acceptance. 10. AMENDMENT NO. 2 TO ORANGE COUNTY TRANSPORTATION C -3051 AUTHORITY (OCTA) MASTER FUNDING AGREEMENT. Approve OCTA Master Amendment No. 2 to Cooperative Agreement No. C -95 -985 between the Funding OCTA and the City of Newport Beach. (38) 11. MACARTHUR BOULEVARDBIG CANYON SOUND WALL C- 2825(K) AGREEMENT. 1) Authorize the Mayor and the City Clerk to execute a C -3333 revised Cooperative Agreement with the Big Canyon Community BA -046 Associations and the Big Canyon Country Club that provides for cost sharing MacArthur to construct two sections of wall along a portion of the westerly side of Boulevard/ MacArthur Boulevard; 2) authorize the City Manager to negotiate and Big Canyon execute a Joint Use Agreement with the Southern California Edison Sound Wall Company (SCE) across two sections of sidewalk area adjacent to the (38/40) locations where the walls will be constructed along the westerly side of MacArthur Boulevard; and 3) approve a budget amendment (BA -046) appropriating $33,500 from the unappropriated surplus in the CIOSA Loan Fund to the MacArthur Boulevard Widening Account No. 7432- C5100066. Council Member Thomson abstained from voting on this item. 12. Removed at the request of Council Member Debay. 13. BONITA CANYON SPORTS PARK (C -3270) - APPROVAL TO C -3270B ADVERTISE AND NEGATIVE DECLARATION APPROVAL. Bonita Canyon 1) Approve the plans and specifications; 2) authorize staff to advertise for Sports Park bids for the construction of the project; and 3) approve Mitigated Negative (38/62) Declaration. 14. APPROVAL OF PROFESSIONAL SERVICE AGREEMENTS FOR C- 3285(A) ZONE III AND ZONE IV WATER PUMPING STATIONS. Authorize the C- 3285(B) Mayor and the City Clerk to execute a Professional Services Agreement with Zone III and IV John Powell and Associates for a fee of $18,949 and with Mark Balan & Water Pumping Associates for a fee of $27,944. Stations (38) 15. AUTHORIZATION TO TRANSFER THE ACUTELY HAZARDOUS C -3140 MATERIALS RISK MANAGEMENT PROGRAM TO THE ORANGE Hazardous COUNTY HEALTH CARE AGENCY AS PART OF A CERTIFIED Materials UNIFIED PROGRAM AGENCY. Amend the contract with the Orange Risk County Health Care Agency to transfer responsibility for the risk Management management program to the County's Certified Unified Program Agency. Program (38) 16. CITY MANAGER'S AMENDED EMPLOYMENT AGREEMENT. Adopt C -3262 the three recommended changes to the City Manager's Employment City Manager's Agreement. Agreement (38) MISCELLANEOUS ACTIONS 17. PLANNING COMMISSION AGENDA FOR MARCH 9, 2000. Receive Planning and file. (68) Volume 53 - Page 243 City of Newport Beach City Council Minutes March 14, 2000 INDEX 18. NOMINATION FROM ECONOMIC DEVELOPMENT COMMITTEE TO Economic FILL EDC VACANCY. Confirm appointment of B.J. Johnson to fill Development vacancy as the Corona del Mar Chamber of Commerce representative to the Committee Economic Development Committee. (24) 19. BALBOA VILLAGE BUSINESS IMPROVEMENT DISTRICT Res 2000 -26 RENEWAL, ANNUAL REPORT FOR 2000 -2001 FISCAL YEAR AND Balboa Village ADOPTION OF RESOLUTION OF INTENTION TO LEVY FOR 2000- Business 2001 FISCAL YEAR. 1) Approve the Balboa Village Business Improvement Improvement District 2000 -2001 Annual Report; and 2) adopt Resolution of Intention District (BID) No. 2000 -26 to Levy and set public hearing for March 28, 2000. (27) 20. DONATION OF SIGNS - NEWPORT ELEMENTARY SCHOOL. Donation of 1) Accept the donation of eight signs from the Sons of the American Legion Signs at for installation by City forces at Newport Elementary School; and 2) direct Newport staff to convert existing school signage to the new color signs at the time Elementary replacement is required. School (78) 21. REQUEST FOR ASSISTANCE FROM NEWPORT BEACH FILM Newport FESTIVAL. Allocate $30,000 from Economic Development capital account Beach Film to assist with costs of all Newport Beach theaters. Festival (68) 22. Removed at the request of Mayor Pro Tem Adams. 23. BUDGET AMENDMENT FOR REFORESTATION PROJECT. Approve BA -047 a budget amendment (BA -047) to increase revenue appropriations of $5,000 Reforestation in Revenue Account 3180 -5860, and increase expenditure appropriations in Project Account 7015- C3170367 to fund Bayside Drive reforestation project. (40/62) 24. STAFF ADJUSTMENTS IN HUMAN SERVICES /RISK Staff MANAGEMENT. Approve the addition of a management analyst position Adjustments and the conversion of two part -time office assistant positions to one full -time (66) department assistant position. 529. REQUEST FOR FUNDING OF STRUCTURAL REPAIRS OF THE BA -048 OASIS SENIOR CENTER. Approve a budget amendment (BA -048) to Oasis Senior appropriate funds from the General Fund - Fund Balance to the Capital Center Improvement Project Account 7011- C4120538 - OASIS Senior Center Improvements Improvements, to undertake the critical structural repairs of the OASIS (40/62) Senior Center. 530. BALBOA BAY CLUB (BBC) LEASE OPTION EXTENSION REQUEST C -519 PROPOSED AMENDMENT. Authorize preparation of a formal Balboa Bay amendment to the option to lease consistent with the proposal and authorize Club execution of the proposed amendment by the Mayor. (38) Motion by Mayor Pro Tem Adams to approve the Consent Calendar, except for those items removed (8, 12, and 22), and noting the abstention by Council Member Thomson on Item No. 11. The motion carried by the following roll call vote: Ayes: Thomson, Glover, Adams, Debay, Ridgeway, O'Neil, Mayor Noyes Volume 53 - Page 244 City of Newport Beach City Council Minutes March 14, 2000 Noes: None Abstain: None Absent: None ITEMS REMOVED FROM THE CONSENT CALENDAR 8. ORDINANCE ADOPTING CONSTRUCTION SITE FENCING AND SCREENING REQUIREMENTS. Council Member Ridgeway stated that he supports the concept of fencing residential sites; however, he believes that screening is not necessary and would be an unnecessary expense for a process that hopefully does not take more than 180 days. Motion by Council Member Ridgeway to introduce Ordinance No. 2000- 7 adding Sections 15.60.070 and 15.60.080 requiring construction sites to be fenced but without the screening requirement; and pass to second reading on March 28, 2000. Council Member Glover stated that she requested this report because there are many homes that have been knocked down for reconstruction in Newport Heights. She believed that placing the screens around the construction site makes the area a "non- event" and completely changes the atmosphere, compared to a site with no fencing. Council Member Ridgeway believed that Council Member Glover's concerns are controlled by other regulations, while fencing normally deals with safety. He indicated that it is almost impossible to hide construction sites in the City and that screening does not hide them. Council Member Glover added that screening also cuts down on the noise. The motion died for lack of a second. Motion by Council Member Glover to introduce Ordinance No. 2000 -7 adding Sections 15.60.070 and 15.60.080 requiring construction sites to be fenced and screened, and pass to second reading on March 28, 2000. Regarding exceptions, Building Director Elbettar stated that the applicant can discuss concerns at a pre - construction meeting and that exceptions can be granted at that time. He confirmed that the ordinance indicates that he is the person that grants the exceptions. In response to Council Member Ridgeway's questions, Mr. Elbettar stated that screening can be a means of erosion control during the rainy season if applied effectively and that that large tract developments and grading sites do voluntarily screen their sites to control erosion. He reported that the screens may minimize the dust; however, he is not aware of any studies that indicate that the screens decrease noise. The motion carried by the following roll call vote Ayes: Thomson, Glover, Adams, Debay, O'Neil, Mayor Noyes Noes: Ridgeway Abstain: None Absent: None Volume 53 - Page 245 INDEX Ord 2000 -7 Construction Site Fencing (26) City of Newport Beach City Council Minutes March 14, 2000 12. 22. OCEAN FRONT WALNUT AND (C- 3234). ;TREET END IMPROVEMENTS, 60TH, 62ND, CEDAR, LUGONIA STREETS - AWARD OF CONTRACT Council Member Debay stated that the City has an agreement with the Coastal Commission to work on a certain number of street end improvements in West Newport. She reported that the improvements create a safer environment and keep the sand from blowing onto the boardwalk. She noted the street ends that are budgeted in the 1999 -2000 budget and reported that seven more street ends will be completed over the next two years. She believed that, once all the street ends are completed, the funds from the Ocean Front encroachment agreement should be used to assist with the City's largest undergrounding project and to widen the sidewalks, remove the poles, and relocate the fire hydrants to meet ADA requirements. Public Works Director Webb referenced Council Policy I.-12 and indicated that this request would fall under the "similar project" provision. Motion by Council Member Debay to 1) approve the plans and specifications; 2) award a contract to JDC, Inc. for the total price of $135,861 and authorize the Mayor and the City Clerk to execute the contract; 3) establish an amount of $13,500 to cover the costs of testing and unforeseen work; and 4) direct that the 'funds from the Ocean Front assessment agreement be assigned to undergrounding and street repairs in West Newport after the street ends are completed. The motion carried by the following roll call vote: Ayes: Thomson, Glover, Adams, Debay, Ridgeway, O'Neil, Mayor Noyes Noes: None Abstain: None Absent: None COUNCIL POLICY REVISIONS FOR 2000 AND REAFFIRMATION OF CITY S STATEMENT OF INVESTMENT POLICY. Regarding Council Policy F -1, Mayor Pro Tem Adams indicated that he provided suggestions last year to fine tune the investment policy, but was unable to meet with staff to implement them. He stated that he would like to see a policy relative to the fee the City pays its asset managers, how they are selected, and clearer guidelines on the reports they provide. He believed that it would make it easier for Council to compare and understand the reports with more uniform reporting, noting that the City is not assessing the managers' performance against any benchmark. Regarding municipal bond estimates, Mayor Pro Tem Adams reported that the policy does not have a stated maximum maturity. He also believed that the reporting to Council has slipped since the Finance Committee was disbanded and is falling short of the requirements in the policy. He suggested that, as part of the reporting procedure, Council consider having the asset managers present their reports quarterly or bi- annually at a study session. He indicated that he will move the recommended action but asked that he meet with staff to articulate his suggestions in more detail. Volume 53 - Page 246 INDEX C -3234 Ocean Front Street End Improvements (38) Council Policy Revisions (69) City of Newport Beach City Council Minutes March 14, 2000 INDEX Mayor Noyes asked if this item should be continued. Mayor Pro Tem Adams pointed out that there is a requirement that the policy be reaffirmed annually, but Council can change the policy in the near future if needed. Council Member Glover stated that she sits on the South Coast Air Quality Management District and chairs the investment committee. She reported that their study concluded that Newport Beach had the best yields, best policy, and tightest and most conservative rules compared to Los Angeles County, the City of Los Angeles, Riverside County, the City of Riverside, San Bernardino County, and Orange County. Mayor Pro Tem Adams stated that the report is probably true; however, he indicated that there is no way for Council to come to that conclusion by the way the reports are presented. He indicated that he will be suggesting some type of aggregated investment reporting so that Council knows what the aggregate yield is and can easily see how the City is doing against the targets. Motion by Mayor Pro Tem Adams to a) approve the proposed revisions to Council Policies A -2, A -4, A -6, D -2, E -2, F -2, F -5 and G -3; b) reaffirm Policy F -1 (Statement of Investment Policy); and c) direct staff to meet with Mayor Pro Tem Adams to discuss issues raised relative to Policy F -1. The motion carried by the following roll call vote Ayes: Thomson, Glover, Adams, Debay, Ridgeway, O'Neil, Mayor Noyes Noes: None Abstain: None Absent: None PUBLIC COMMENTS Mike Johnson, 5803 Seashore Drive, invited everyone to the March 23 conceptual plan unveiling of the Orange Coast River Park. He stated that they distributed over 5,000 or 6,000 fliers and are looking for input on how to use the land. If anyone has questions, Mr. Johnson can be reached at 642 -3125 or they can contact Louise Greeley at 631 -1475. Marlon Hernandez, student at Newport Harbor High School, urged Council to open up more parking. He is unsure where this would happen but reported that he parks two blocks away from school in an area designated for two hour parking. In response to Mayor Noyes' question, Mr. Hernandez confirmed that the parking lot up the street is for senior parking but that he was not one of the seniors who was issued a parking pass. Council Member Glover indicated that the City has done many things to improve parking and is unsure where they could go next. She asked whether the 15th Street parking lot is full, but Mr. Hernandez was unsure where that lot was located. Council Member Ridgeway stated that he is heading the Youth Council this year and that they will be conducting Youth Council Day at City Hall on May 25. He reported that the #1 priority they will be discussing that day is the parking situation at Newport Harbor High School and that he requested to receive all staff reports on this issue. Volume 53 - Page 247 City of Newport Beach City Council Minutes March 14, 2000 INDEX • Nan Morisseau, Newport Beach Recital Series Pacific Virtuosi, invited Council to the Fifth Anniversary Tchaikovsky Spectacular 160th Birthday Celebration at 7:30 p.m. on Sunday, March 26 at the Barclay Theater, 4242 Campus Drive in Irvine. She stated that the concert will also be free to anyone born on March 26. She reported that they are in a case study for the Newport Beach Performing Arts Center and that more information can be obtained by going to their website (www.pacificvirtuosi.org). She indicated that Baritone Boris Zhaivoronok, Cellist Boris Andrianov, Concert Pianist Leonid Levitsky, and Concert Master of the Long Beach Symphony Roger Wilkie will be participating in this year's program entitled Romances for Voice and Piano. PUBLIC HEARING 25. 2000 -2005 CONSOLIDATED PLAN DOCUMENT FOR COMMUNITY Community DEVELOPMENT BLOCK GRANT FUNDS. Development Block Grant Senior Planner Teague reported that the Community Development Block Funds (CDBG) Grant (CDBG) funds are administered by the Federal Department of (87) Housing and Urban Development (HUD) who require annual renewals within a five -year framework. She stated that 1995 was the last year one was done and that a one -year action plan has been completed each year. Staff is currently writing the staff report for the 2000 -2005 Consolidated Plan which is expected to be brought to Council in April. She indicated that the primary expected expenditure will be the Balboa Village Pedestrian Improvement Plan that was approved by Council last month. She also reported that the City expects to use the maximum amount allowed by HUD (15 percent of the funds) on social services. She indicated that any comments made tonight, as well as those made next month, will be incorporated into the plan that will be submitted to HUD by May. Mayor Noyes opened the public hearing. David Levy, 201 South Broadway in Santa Ana, stated that he is a housing rights advocate for the Fair Housing Council of Orange County, serves as the President of the Affordable Housing Clearinghouse Board of Directors, and sits on the Boards of the Orange County Homeless Usage Task Force and Clearinghouse Community Development Financial Institution. He believed that 65 percent of the CDBG allocation should be used for programs other than social services and administration. He urged Council to give a high priority to programs that build and rehabilitate housing for low- income households rather than on the Balboa Peninsula revitalization efforts. He added that the highest priority should be given to the extremely -low income category (households earning 0 -30 percent of the area median income) since HUD specifically identifies them. He stated that he is emphasizing that category because of Orange County's high median income, clarifying that an extremely -low income household is a family of four that earns about $23,000 a year. Mr. Levy reported that Southern California has many workers that are stuck at earning minimum wage with no opportunity to move up and believed there is a crisis in Orange County. Ms. Teague reported that the City has applied all of the funds toward affordable housing since the City has been receiving CDBG funds (13 years). She indicated that the general outline in the next five -year plan will be Volume 53 - Page 248 City of Newport Beach City Council Minutes March 14, 2000 dedicated to the Balboa Village Pedestrian Improvement Streetscape Plan and clarified that the City is trying to use other funds to develop affordable housing. She emphasized that it is not that affordable housing is not an identified goal, but that the City is not targeting the Federal funds for it especially since Banning Ranch is anticipating developing more affordable housing in the City. There being no further testimony, Mayor Noyes closed the public hearing. Motion by Council Member Ridgeway to direct staff to move forward as indicated in the staff report. The motion carried by the following roll call vote: Ayes: Thomson, Glover, Adams, Debay, Ridgeway, O'Neil, Mayor Noyes Noes: None Abstain: None Absent: None 26. APPOINTMENT OF AFFORDABLE HOUSING TASK FORCE. Motion by Mayor Noyes to adopt Resolution No. 2000 -27 establishing the Affordable Housing Task Force; and confirm Mayor Noyes' appointment of Council Member Debay (Chair), Council Member Ridgeway, and Mayor Pro Tem Adams to the Affordable Housing Task Force. Council Member Ridgeway urged Council to prioritize the Lower Bayview Landing site for senior affordable housing. Mayor Noyes indicated that this issue can be discussed when the task force meets. The motion carried by the following roll call vote: Ayes: Thomson, Glover, Adams, Debay, Ridgeway, O'Neil, Mayor Noyes Noes: None Abstain: None Absent: None 27. SUPPLEMENTAL REPORT ON THE BALBOA YACHT BASIN (BYB) REQUEST FOR PROPOSALS PROCESS. City Manager Bludau reported that this item was discussed at a study session on February 22 and that it was decided it would be further discussed at a regular meeting. He indicated that Council requested and received more information and The BellPort Group's• proposal was shared with the Balboa Yacht Basin (BYB) tenants. He stated that staffs recommendation to continue City management over the BYB using City staff is still the same. Joe Ueberroth, The BellPort Group, 301 Shipyard Way, thanked Council and indicated that The BellPort Group (BeUPort) is honored to be selected as one of the top bidders. He believed that BellPort's proposal is the most cost effective option, even compared to the City, and pointed out that they are Volume 53 - Page 249 INDEX Res 2000 -27 Affordable Housing Task Force (24) Balboa Yacht Basin Management (51) City of Newport Beach City Council Minutes March 14, 2000 INDEX even proposing to increase management services and resources for less. He assured that they have a passion to try to make the City the greatest destination on the coast. Mr. Ueberroth indicated that he was overwhelmed that 130 tenants signed the petition, but noted that they signed it prior to BellPort submitting their proposal. He realized that the tenants signed the petition because they were not in favor of the City going with an outside company who would not provide additional benefits and whose management fees would drive up costs. He stated that they talked with many of the tenants who signed the petition and understands their concern to continue the marina as a City marina. He emphasized that BellPort would just be leasing the marina from the City and would not take over control; does not set the rates but would make recommendations; and cannot change the rules at the marina. Mr. Ueberroth reiterated his belief that BellPort is the low -cost provider and the most cost effective approach. He stated that there might have been a mistake in the City's estimate because the City did not use current salary/benefit and operating costs. Regarding benefits, he pointed out that BellPort is bringing more staff on board, compared to the City's one full-time and one part -time employees. Further, they have resources to handle marketing and environmental concerns, and can also track guest boaters. He asked Council to strongly consider the option of having BellPort be the BYB managers. Mayor Pro Tern Adams asked if BellPort's proposal offers employment to the City employees who would be displaced. Mr. Ueberroth stated that they can provide more affective coverage by using alternative methods. Mr. Bludau indicated that the City would see where the employees could be shifted; however, one or both of them may be laid off in accordance with the memorandum of understanding if no appropriate place can be found for them. Mr. Ueberroth noted that the City is not staffed to deal with environmental issues, but those employees may be suited for that. In response to Mayor Pro Tern Adams' questions, Mr. Ueberroth stated that BellPort would provide a team of people who will be at the facility seven days a week to fix problems and conduct preventative maintenance. He added that BellPort has a program to assist guest boaters locate slips in the area and that the revenue is shared with the tenants and the marina. Mr. Bludau indicated that subleasing does take place when the City is notified that someone has a slip available; however, the City does not market that feature as much. Council Member Debay requested that Mr. Ueberroth explain the benefits that BellPort offers. Mr. Ueberroth reported that they have a concierge program that is not exclusive; provide newsletters; and provide information on discounted, reliable boat services. Regarding the sublease program, he wondered how the tenants would sublease if BellPort did not do it. He stated that they reduce the tenant's rates and have received positive feedback on this program. He added that they try to make events a community event (i.e. Boat Parade) and conduct functions for the tenants. He emphasized that BellPort is dedicating more manpower to the marina and constantly communicate with the boaters. Further, they send out Volume 53 - Page 250 City of Newport Beach City Council Minutes March 14, 2000 INDEX environmental newsletters to tenants about their responsibilities and future concerns. Regarding trash in the water, Mr. Ueberroth stated that BellPort does skim the water on a daily basis and sometimes twice a day if there is high storm drain runoff. Ron Bower, 1430 Serenade Terrace, stated that he has been a tenant at BYB for 15 years, is a Balboa Basin Yacht Club board member, and is representing the tenants of BYB. He pointed out that the City was not looking to outsource management when this process began and that there were no problems with City management that inspired this bidding process. He stated that BellPort is using Peter Ueberroth and Dick Stevens in an effort to promote themselves for privatized management. Further, the tenants signed a "vote of confidence ", not a petition, in support of the City's continued management because the City has provided excellent service. Mr. Bower stated that the tenants are concerned about the level of service and the attitude of personnel if BellPort is awarded this contract. He indicated that this opinion has been formed based on input from a number of tenants that have firsthand experience in BellPort marinas. He pointed out that the City Manager recommended that all proposals be rejected and that the City continue to manage the marina. He indicated that BellPort already controls a majority of the marinas in Newport Harbor, believing that awarding this contract to them would give them a monopoly and would not be in the best interest of the City. Mr. Bower concluded by stating that it is difficult to imagine why the City would come to any other conclusion since the City Manager is recommending that the City retain management and since the tenants want the City to remain onboard as managers. Regarding subletting slips, Mr. Bower pointed out that the lease does provide for that and any funds that would be gained is passed on to the tenants. He noted that property taxes are passed on to the tenants since BYB is a City -owned property and wondered if the City could legally lease BYB to outsiders and retain some of the profits generated from subleasing based on the fact that the tenants already pay the possessory use taxes. Tom Murphy, Balboa Yacht Basin tenant, stated that he drives past three marinas and pays 1/2 to 2/3 more than he would in the other marinas because of the charisma of Newport Beach. He indicated that he spends three weekends a month at BYB, spends money at the City's restaurants and stores, and pays taxes to own the slips. He admitted that proposals in the beginning seemed to be offering a lot for less money, but assured Council that the City is managing BYB very well. Mr. Murphy indicated that the tenants are not looking for a fancy marina, but are looking for a well run marina at a fair price. He asked that Council not "rock the boat" because the tenants do not need new management with a profit agenda that may preclude service and price, and they do not need a management company that would control the rates of the entire harbor through marina takeovers. Sherry Bower, 1430 Serenade Terrace, stated that her second home is at BYB and has been for 15 years. She indicated that she has been in the third party property management and commercial brokerage business since 1955, and holds the Certified Property Manager designation from the Institute of Real Estate Management. As a professional, she reported that there are only three reasons why an owner would outsource management, spend Volume 53 - Page 251 City of Newport Beach City Council Minutes March 14, 2000 INJUDKI additional money, and then distance themselves from the asset: geographic proximity does not work, they do not have the personnel, and they do not have the expertise. However, in this case, the City has the geographic proximity, personnel has done an outstanding job, and the City has the expertise as proven by decades of management. She believed that the City should be incredibly proud of its fine job at the marina and reminded Council that the tenants have given the City an overwhelming vote of confidence. Ms. Bower expressed concern that some may think this is all about money. She indicated that the tenants recognize that Council has a responsibility to the City and understands that Council maintains the incredible burden of fiscal responsibility. However, at the end of the day, it is not about money because the market sets the rates. She emphasized that part of this is about maintaining a sense of community and a City attachment to the marina without the burden of a disengaged third party manager. She stated that they know BellPort's reputation and they know how they operate because their fellow boaters tell them. She indicated that they do not need a concierge program, do not care about discounted services, and that subleasing is not an issue to most of them. Ms. Bower emphasized that this is about keeping the City in very close touch with a precious asset and asked that the City not distance itself. She believed that it feels like "David and Goliath" since Peter Ueberroth is a driving force in The BellPort Group and a very powerful and influential man. She respectfully stated that what is in Peter Ueberroth's and BellPort's best interest is not in the best interest of the City and its residents. She thanked Council for what they have already done no matter what the outcome. Council Member Ridgeway stated that BellPort is certainly a qualified third party manager; however, he is still not persuaded in believing that the City cannot do a better job. Further, the City needs to continue a presence on the harbor since it is the one toe -hold and since the City has done an excellent job with it. He reported that the Harbor Committee discussed a general plan element that addresses the harbor and that guest boat usage is one of the biggest components. He pointed out that docks and moorings are almost 100 percent leased. In fact, there is a 20 year waiting list for moorings. He reiterated that the City is doing a good job and emphasized that it is important for the City to maintain a presence in the harbor. Motion by Council Member Ridgeway to reject all proposals and continue to operate the BYB using City staff. Council Member Glover stated that she will not be supporting the motion. She indicated that the Harbor Committee recommended that the City not have a guest program, but now the City has an opportunity to use networking for this type of program. She also noted that NPDES will be a huge, expensive issue for the City in the future and that BellPort is willing to work with the City on this. She indicated that she walks that area frequently with her grandchildren and that the water is filthy. She stated that it can only be a positive for the City if BellPort is going to clean the water. She expressed concern that the many calls on this have inferences that BellPort is not capable of doing this, when they are actually capable. Volume 53 - Page 252 City of Newport Beach City Council Minutes March 14, 2000 INDEX Council Member Ridgeway stated that he is the chair of the Harbor Quality Committee and is on the Harbor Committee. He indicated that he hoped that some of the members were present to discuss the importance of keeping a presence on the bay. He reported that BellPort is one of the companies the City has noted as a violator of environmental concerns so their new -found environmental consideration is based on the City talking to them. He agreed that environmental issues are a real concern; however, he noted that the City is looking at this issue and is manned to take care of it. Mayor Pro Tem Adams expressed the opinion that the City should give BellPort an opportunity to manage BYB. In response to Mayor Pro Tem Adams' questions, Mr. Bludau stated that there is only a proposal at this time, but BellPort is proposing a three year initial term with a 30 -day termination option notice if profits are not met. Mayor Pro Tem Adams stated that there is a lot to gain and very little to lose. He believed that the City will still have the presence on the bay because it still owns the marina, but will just be contracting out the management. He added that he does not see the tangible benefits of only having one full -time and one part -time employee managing the facility. He stated that the proposal is a responsible response to the RFP. Council Member Debay stated that it is hard to ignore the comments that were written on the tenants' vote of confidence. She indicated that she is going to support the motion, as long as the City skims the water for trash and debris, but indicated to BellPort that she is not saying they should not come back next year. She noted that they had a great proposal and this was a hard decision to make. Council Member Thomson stated that he would ordinarily be supportive of outsourcing these types of things, but emphasized that this is the City's one foot -hold to the bay and that the City should be very proud of it since it was built and maintained by the City. He reported that there are about 5,000 to 7,000 boats in Newport's waters. Council Member O'Neil stated that he listened to both sides of the issue and has met with Joe Ueberroth and Dick Stevens. He indicated that he was interested in the proposal because everyone is looking for a way to privatize some of the City's activities and felt it was worthwhile to investigate whether outsourcing the marina management made sense. He added that he is aware that BellPort is a very reputable and fine organization to manage marinas throughout the State. However, since it appears that there is not a strong consensus on Council and he does not have a compelling vote either way, he is inclined to go along with staffs recommendation. He recommended that the City continue surveying BYB tenants and reiterated that the marina boaters want to stay with the current operation. Council Member Ridgeway expressed the opinion that BellPort is a fine operation and that the City has the opportunity to learn from them. Further, the City can reassess the entire situation in the future but not at this time. Deputy City Manager Kiff indicated that Council Member Ridgeway appropriately stated that the Harbor Quality Committee directed staff to meet with BellPort to talk about concerns at Lido dry slips. He stated that BellPort responded appropriately to try to keep the area clean in terms of Volume 53 - Page 253 City of Newport Beach City Council Minutes March 14, 2000 0 maintenance. However, when asked if the City was doing the right things at BYB, he, Deputy Fire Chief Melum, and Code Enforcement Officer Sinasek came to the consensus that no one is doing the right thing. He emphasized that he was not picking on BellPort and does not see them as violators. The motion carried by the following roll call vote Ayes: Thomson, Debay, Ridgeway, O'Neil, Mayor Noyes Noes: Glover, Adams Abstain: None Absent: None RESPONSES TO MARINAPARK REQUEST FOR PROPOSALS. Assistant City Manager Wood stated that staff issued a request for proposals (RFP) as directed by Council for future use or redevelopment of the Marinapark site. She reported that the City received proposals from 17 parties and that the staff report includes a brief summary. She pointed out that there is a great variety of proposals in terms of uses and revenue, and noted that this will be a very significant and complex policy decision. She indicated that staff is suggesting a few alternatives for Council consideration on how to review the proposals and move forward with the analysis. She stated that staff believes that an economic analysis needs to be conducted and a relocation impact report needs to be completed if Council wants to make a decision soon. Additionally, a quick look at the requirements for land use entitlement and traffic impacts also needs to be conducted. She stated that all the proposals can be reviewed or Council can narrow the proposals down. She indicated that Council may also choose to delay taking action on the proposals until there is some action that resolves the tidelands boundary issue. Council Member Ridgeway recommended that the City conduct an economic evaluation of all the proposals and conduct a relocation analysis to be brought back to Council with recommendations. He also requested that Council direct the City Attorney's office to file an action for a judicial determination regarding the uplands issue. Ms. Wood estimated that the analysis would cost less than $10,000. Council Member Ridgeway hoped that is would cost less than $5,000. Stewart Berkshire, 1770 West Balboa Boulevard, #7A, President of the Marinapark Association, thanked Council for extending their lease for two years and also thanked Deputy City Manager Kiff and Assistant City Attorney Clauson for coming to City Hall on their days off to talk with them about the new lease. He added that they appreciate Council's active support of their case before the State Lands Commission. He indicated that using the judicial arena is not unheard of, noting that this is how the high tide line was determined in 1927 or 1928. Mr. Berkshire reported that they presented their case to the State Lands Commission and the City subsequently voted to join them in urging the Commission to straighten the high tide line across their property the same as it is with the adjacent properties on either side. He expressed appreciation also for pledging to give consideration to the tenants when evaluating the proposals. He stated that this could get emotional when tenants think they will be moved out of their Volume 53 - Page 254 INDEX C -3316 Marinapark Proposals (38173) City of Newport Beach City Council Minutes March 14, 2000 homes sometime in the future. INDEX Motion by Council Member Ridgeway to direct staff to hire a consultant to conduct an economic evaluation of each of the proposals and to conduct a relocation analysis to be brought back to Council at a future meeting; and direct the City Attorney to come back with the pros and cons associated with seeking a judicial determination on the uplands issue. City Manager Bludau believed that the economic evaluation can be conducted in about three weeks, but the relocation analysis would probably take two months to complete. Mayor Noyes recommended receiving the reports in increments. City Attorney Burnham indicated that he will bring a report back relative to a judicial determination at a closed session. Council Member Glover took issue with the consultant cost, believing that the City will not get much for only $1,200 per proposal. Ms. Wood noted that $10,000 was just an estimate based on what other analyses have cost the City. Mr. Bludau indicated that the City will be hiring someone who has previously worked with these types of proposals and is business savvy to raise questions that would help Council in evaluating the proposals further. Mayor Pro Tem Adams pointed out that the major economic benefits have already been outlined in the chart provided in the staff report and assumed that Council is talking about looking at secondary economic benefits, i.e. sales tax and economic stimulus to the area. Ms. Wood clarified that the City needs someone who does economic analysis of development proposals all the time and has a better understanding of the market. The motion carried by the following roll call vote Ayes: Thomson, Glover, Adams, Debay, Ridgeway, O'Neil, Mayor Noyes Noes: None Abstain: None Absent: None MOTION FOR RECONSIDERATION S30. BALBOA BAY CLUB (BBC) LEASE OPTION EXTENSION REQUEST PROPOSED AMENDMENT. Motion by Council Member Thomson to reconsider Item No. S30 so that he could abstain from voting on it. Council Member Glover asked and received clarification from City Clerk Harkless that the agendas are available on the City's website. Council Member Glover indicated that she thought this issue was placed under current business, not the consent calendar. Council Member Thomson asked if there was a policy that prohibits supplemental items from being placed on the consent calendar. Mayor Noyes indicated that he is not aware of such a policy. City Manager Bludau indicated that the direction from Council is to only place items that are absolutely necessary on a supplemental agenda. Council Member Thomson Volume 53 - Page 255 City of Newport Beach City Council Minutes March 14, 2000 requested that this be reviewed. The motion for reconsideration carried by the following roll call vote: Ayes: Thomson, Glover, Adams, Debay, Ridgeway, O'Neil, Mayor Noyes Noes: None Abstain: None Absent: None Motion by Council Member Rideewav to authorize preparation of a formal amendment to the option to lease consistent with the proposal and authorize execution of the proposed amendment by the Mayor. The motion carried by the following roll call vote: Ayes: Glover, Adams, Debay, Ridgeway, O'Neil, Mayor Noyes Noes: None Abstain: Thomson Absent: None Regarding the OASIS Senior Center, Mr. Bludau reported that the staff report could not get on the agenda, but he deemed it of such importance that he placed it on a supplemental agenda and takes responsibility for it. ADJOURNMENT - 9:40 p.m The agenda for the Regular Meeting was posted on March 8, 2000, at 3:30 p.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. The supplemental agenda for the Regular Meeting was posted on March 10, 2000, 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 256 INDEX