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HomeMy WebLinkAbout01 - 02-26-2002March 12, 2002 Agenda Item No CITY OF NEWPORT BEACH City Council Minutes Study Session ����� February 26, 2002 - 4:00 p.m. INDEX ROLL CALL Present: Heffernan, O'Neil (arrived at 4:30 p.m.), Bromberg, Glover, Adams, Proctor, Mayor Ridgeway Absent: None CURRENT BUSINESS 1. CLARIFICATION OF ITEMS ON THE CONSENT CALENDAR - None. 2. PRESENTATION ON CONFLICT OF INTEREST AND COUNCIL ADVOCACY ON PROJECTS. Mayor Ridgeway noted that this type of presentation is generally received at a League of California Cities meeting or some type of meeting outside of City auspices. However, since no retreat was held this year, it is appropriate to hear from Mr. Kohn. Phil Kohn, Rutan and Tucker, Laguna Beach City Attorney, stated that this is a timely topic to discuss with Council in light of the newspaper articles about heightened public scrutiny of activities that transpire to other jurisdictions. Further, there has been recent highlights in the guidelines that the Fair Political Practices Commission (FPPC) has adopted that bear on some of the issues he will be discussing. He emphasized that his statements are not intended to be advice on how to deal with a specific situation. He stated that there are very fact specific inquiries that require careful consideration and sometimes there are a number of exceptions to the general rule. He emphasized that he will be presenting highlights of the major regulations that Council should be concerned with. Further, this may also serve as a refresher to the sensitivity that the State Regulatory Authorities and the public have about conflict of interest issues. Mr. Kohn reported that the conflict of interest laws touch on a lot of fundamental notions, i.e. the public officials hold an office of public trust and they should be discharging those responsibilities in a manner that is impartial, free from bias, and free from any consideration of the public official's or their supporter's financial interests. He stated that the appearance of impropriety is almost as disfavored as an actual impropriety. He reported that the three essential sources of authority for conflict of interest laws are statutory sources, common law sources, and local regulations. He noted that local regulations can be ordinances or charter provisions, and that each local jurisdiction retains the ability to adopt its own code of ethics or conduct requirements. Mr. Kohn stated that he will be discussing two types of statutory sources: the Political Reform Act (Section 51000 and following) and Government Code Section 1090. He reported that the Political Reform Act is a measure Volume 55 - Page 1 No report City of Newport Beach Study Session Minutes February 26, 2002 INDEX adopted by the voters in 1974 and deals with a number of topics, including election campaign activities, disclosure requirements for campaign contributions, and activities of lobbyists. He stated that this is administered by the FPPC, a State body appointed by the Governor, who is charged with promulgating administrative rules and regulations to compliment the regulations that are otherwise found in the statutes. Regarding conflict of interests, he indicated that the general prohibition in the Political Reform Act states that, "A public official may not 1) make; 2) participate in the making of; or 3) use ones official position to influence or attempt to influence the outcome of a decision in which the public official knows or has reason to know he or she has a financial interest ". He noted that the Political Reform Act deals only with economic interests, and that a necessary interest exists if it is reasonably foreseeable that a decision pending before the body of which you are a member will have a material financial affect on one or more of your economic interests, and if that affect is distinguishable from the financial affect on members of the public. He reported that, to discharge the requirements of the Political Reform Act, public officials disclose their economic interests or disqualifies themselves under appropriate circumstances. Mr. Kohn stated that the FPPC has established an eight step approach to ascertain whether a conflict of interest exists. He explained that a person has to ask themselves 1) if they are a public official within the meaning of the Political Reform Act; 2) if they are making, participating in the making, or influencing a government decision; 3) what are their economic interests; 4) are their economic interests directly or indirectly involved in the government decision; 5) what kinds of financial impacts on those economic interests are considered important enough to trigger a conflict of interest; 6) is it substantially likely that the government decision will result in one or more of the maturiality standards being met; 7) if you do have a conflict of interest, does "public generally exception" apply; and 8) even if the public official has a disqualifying interest, is the public official's participation legally required. Regarding GC 1090, Mr. Kohn reported that this is aimed at avoiding self - dealings in local agency contracts and was enacted long before the Political Reform Act. He stated that the GC 1090 states that, "City officers and employees shall not be financially interested in any contract made by them in their official capacity or by any body or board of which they are members ". He explained that this differs from the Political Reform Act in that, with the Political Reform Act, it is sufficient to avoid a violation by disclosing the conflict and then recusing oneself from participating in the decision. However, GC 1090 states that disclosure and disqualification are not enough because, if the official has an interest in a contract made by the city council, even though that council member may have recused him or herself from that decision, there still will be a violation. He reported that the making of a contract encompasses much more than a decision to simply approve the contract or authorize the execution of a contract, but includes everything that culminates in the authorization to approve and execute the contract, such as drafting the contract and participating in negotiations. He stated that the prohibitions in GC 1090 relate to indirect and direct interests of the public official. He emphasized that it does not matter if there is actual fraud or dishonesty involved; it does not matter if there was an actual loss to the city as a result of the contract; it does not matter that the contract is fair, just, and equitable on its face and terms; and it does not matter that the Volume 55 - Page 2 City of Newport Beach Study Session Minutes February 26, 2002 INDEX prohibited contract would be more advantageous to the city than other contracts. He added that the exceptions to the prohibition on self dealing and contracts include the remote interest category and the non - interest category. He explained that remote interest is sufficient in cases in which the officer or employee discloses the interest in the contract, abstains from participating in any activities involved in the making of the contract, and the legislative body ultimately approves the contract without counting the person's vote. He stated that examples of a non - interest is where an officer or employee owns less than 3% of the shares of a for - profit corporation of the contracting party or where the income from the stock of the for - profit corporation is less than 5% of the total income. He reported that there is a limited rule of necessity applicable to GC 1090, but this relates to narrower circumstances in which there is a need for the agency to acquire an essential supply or service from a sole source or the public officer is the only person under the circumstances who may legally act. Mr. Kohl reported that the penalties for violating GC 1090 include invalidation of the contract, criminal sanctions for a willful violation, forever disqualified from holding office in the State, or forfeiting the contractual consideration that was received. Mr. Kohl stated that common law sources are principals of conflicts of interest that have developed through decisions from the California courts, as well as opinions that have been rendered by the California Attorney General. He indicated that the philosophy that underlies the common law conflict of interest is that a public official is impliedly bound to exercise the powers conferred on him with disinterested skill, zeal, and diligence, and primarily for the benefit of the public. He stated that it is the obligation of public officials to discharge the responsibilities with integrity and fidelity. He reported that issues of common law conflicts of interest come up most frequently in the due process context in which council is conducting public hearings and there needs to be an assurance that the decision maker is not being tempted by non - financial, personal interest. He indicated that any matter that forms the basis for bias or prejudice, even though they do not relate to financial interest can form the basis for a common law conflict of interest. Council Member Proctor requested clarification regarding the relationship of policy makers to staff as implementers of the policy, and where the line is in terms of their ability to involve themselves or direct staff. He added that he also has questions regarding the principal of liability and negligent oversight. Mr. Kohn believed that this does not relate to the Political Reform Act because it is not a conflict of interest, an economic interest, or common law bias situation, but is more of an internal administrative issue. He reported that the source of authority to answer that question is typically found in local ordinances or the charter which delineates the powers or obligations of council versus staff. He stated that the prevailing practice of "to the best of his knowledge" provides that, for the day -to -day operational functions of the City, they are generally reposed by a chief executive or operating officer. He added that some cities have adopted ordinances prohibiting direct contact between council members and persons other than city managers. City Attorney Burnham stated that, if Council wants, staff can provide them with a summary of what Mr. Kohn presented. Further, the summary can Volume 55 - Page 3 City of Newport Beach Study Session Minutes February 26, 2002 INDEX also deal with Council Member Proctor's issues regarding local ordinances, the charter, and the section relative to supervisors. He indicated that, after Council reviews it and has additional questions, it can be brought back to another study session. He expressed the opinion that GC 1090 is not written well and the exceptions and provisions are not intuitive. Mayor Ridgeway stated that he read Section 8100 of the Political Reform Act and agreed that it is very confusing. He indicated that Mr. Kohn's verbal interpretation was more enlightening to him. In response to Council Member Glover's questions, Mr. Kohn clarified that a dependent-is not defined by age, but is a person to whom you provide financial support. Mayor Pro Tem Bromberg asked if there is a limitation on stock ownership. Mr. Kohn indicated that he can include in the memo specific financial thresholds depending on whether it is a Fortune 500 company or traded on certain exchanges. Council Member Glover stated that, when she first ran for Council, the former City Clerk told her not to turn in her stock information unless she completely owned 100% of the company. However, she started submitting the information after stock questions arose. She reported that she called the FPPC who told her that, if she voted on a shopping center that could have a drug store in it, and if the drug store netted over $250,000, then she would have a conflict of interest because there are so many Pfizer products in it. She emphasized that what Council can and cannot have is very strident and curtails what they can invest in. She stated that she used to have Starbucks stock but sold it because there were so many Starbucks coming into town that she may need to vote on. Mr. Burnham reported that it took them a while to determine whether a company was a Fortune 500 company and met certain income thresholds. He stated that they can provide Council with written material and augment it as time goes on. Council Member Heffernan asked whether a Council Member has a conflict of interest if they serve on a non -profit board in which no compensation is received and if that organization comes before Council. Mr. Kohn believed that the Council Member does not have a conflict of interest under the Political Reform Act since there is no compensation. However, if the provisions of GC 1090 apply, there is no clear cut exception for a non - profit corporation board of directors member. He stated that there is an explicit designation of a non - interest for a member of a non - profit corporation, but not for a member of the board. He indicated that the City Attorney is presently looking into this. Mayor Pro Tem Bromberg noted that he was on the Balboa Theater Foundation Board of Directors and was their attorney, and the City Attorney suggested erring on the side of caution and so he resigned. Mr. Kohn believed the caution was well advised. He stated that, while the FPPC is responsible for administering the Political Reform Act, they do not take responsibility for administering, interpreting, or giving guidance on GC 1090. He indicated that almost all the reported authority on this statute will be found through the opinions of the Attorney General. Mr. Burnham added that the opinions of the Attorney General are not binding to the courts, and Volume 55 - Page 4 City of Newport Beach Study Session Minutes February 26, 2002 that this is why he tries to err on the side of conservatism. 3. BALBOA THEATER REHABILITATION PROJECT. Assistant City Manager Wood reported that the City purchased the Balboa Theater in 1998 for $480,000, and the City entered into a lease with the Balboa Performing Arts Theater Foundation in 1999 to use it as a theater and to renovate it without paying rent to the City. She stated that the initial lease contained some provisions for protecting most of the historic aspects of the theater; however, through amendments to the lease, this was changed and now the requirement is for the improvements to return the exterior design and treatment of the front facade as close as possible to its original appearance. She indicated that, in keeping with the lease requirement to retain this as a first class community theater, the Foundation decided to provide stadium seating, dressing rooms, expand the lobby, provide concessions, and increase the number of restrooms. She reported that the two options to add these amenities included constructing a basement for $300,000 or purchasing the building next door at 111 Main Street for $1.6 million. She stated that the basement construction is the most difficult part of the construction project because of its location on the Peninsula and the high water table. Ms. Wood stated that, as the Foundation continued the design process with continual input from the Building Department, the basement construction cost has increased to about $1.7 million. She indicated that they spoke with the owner of 111 Main Street who has a $1.6 million appraisal for the property. She stated that the City's appraisal was $1.4 million. She indicated that the Foundation would need only the parcel closest to the theater, noting that the building sits on three parcels. She believed that it would be possible to cut the building in two, lease the part closest to the theater to the Foundation, and then sell the remainder of the building to recoup the cost of the project. Ms. Wood reported that the City's contribution so far has been $500,000 which includes the original purchase price, as well as the lease which provides that the City pay the building plan check fees from Community Development Block Grant (CDBG) funds. She stated that the current cost estimate with the basement is $5.5 million and the fund balance the Foundation has is $1.2 million. She indicated that the staff report outlines a number of options for Council consideration. Regarding Option 1, she stated that the Foundation spoke to staff about demolishing the side and rear walls, shoring the front facade, and constructing the basement, but would not move forward until they complete more Fundraising. She reported that, since the City is the property owner, staff was not interested in having the Foundation move forward without having a guarantee that they would finish the structure. In response to Council Member Heffernan's question as to who called this item up for Council consideration, Mayor Ridgeway noted that a negotiation item was discussed during closed session and it was agreed upon that this should be discussed in a public forum. Mayor Pro Tem Bromberg stated that the initial investment in November 1998 was with CDBG funds, but asked if the new project would not involve these funds. Ms. Wood reported that the CDBG funds are currently Volume 55 - Page 5 INDEX C -3248 Balboa Performing Arts Theater Foundation (38) City of Newport Beach Study Session Minutes February 26, 2002 INDEX committed to the Balboa Village Public Improvement Project. She stated that, not only is this project using a bulk of the funds but the City has applied for a Section 108 loan which is an advance on future CDBG funds. She indicated that this means that, for the next 20 years, the City has a repayment of over $200,000 /year on the loan. She added that this does not give much flexibility to do other large projects. Mayor Pro Tem Bromberg noted that there is discussion about having the Balboa Theater contribute $200,000 to the project and then they would get the lease for the portion of the other building. He asked if the $200,000 would also give them ownership interest. Ms. Wood stated that this is entirely up to how Council wants to structure the agreement. Mayor Ridgeway noted that the $200,000 could also be used toward construction. Dayna Pettit, President and Founder of the Balboa Performing Arts Theater Foundation, requested Council's help with the project by purchasing the Orange Julius building. She indicated that they would pay $200,000 for 1/3 of the building to take the place of the current basement, noting that this would save them over $1 million. She reported that their Board of Directors has grown to 13 members who are very serious about a revitalized Balboa with a vibrant performing arts center and cinema theater being the centerpiece for the current renovation. She added that it would also serve as a catalyst to change the current nature of the Village which now has decrepit shops, vacant buildings, and graffiti: Ms. Pettit reported that they were ready to begin construction upon the receipt of their permit last May, but the Building Department raised a red flag about the liability of constructing a basement in the theater. She stated that this came after they spent $250,000 on plans which already went through the plan check process for 1'/a years. She emphasized that the money used to purchase the theater was CDBG funds which is earmarked for only depressed areas. Ms. Pettit reported that they raised over $2.4 million; their 2000 -2001 campaign has brought in over $180,000; and the Divas and Support Guild have raised over $100,000 since their inception two years ago. She stated that they have been off course the last 1 % years, but have corrected this and are moving forward. She added that they hired a search team to find a business person with strong fundraising skills, they completed a sellout Israeli author event in concert with the Orange County Jewish Federation, and have been voted one of the top ten non - profit organizations in the Greater Newport Beach and Orange County communities by 714 Magazine. She stated that they need an additional $3.9 million to help the City purchase the building next door, build the theater, and endow them through their first year of operation. She emphasized that the purchase of the building next door is a major part of the solution and the City's support is critical to the success of Balboa. Council Member Heffernan noted that the City already has $500,000 invested in this, now it is supposed to spend three times that amount, and the Foundation has $1.2 million in the bank. He asked whether the City will have to fill the gaps in the budget until the project is completed if the theater comes up short with their fundraising. Ms. Pettit stated that she firmly believes that the funds will be raised and that everything the City is spending in Downtown Balboa is not going to do any good unless the nature of the area is changed. Council Member Heffernan noted that the new library in Westcliff needs $1 million and the City told them to raise funds in the neighborhood first rather than look to the City for funding. He Volume 55 - Page 6 City of Newport Beach Study Session Minutes February 26, 2002 INDEX expressed the opinion that a library is more in tune to the long term business of the City than a theater. He stated that, what the theater is asking the City to do, is a fraction of what it will take to get the job done. He indicated that, if the City purchases more real estate but does not have the money to complete the job, the citizens will look at Council strangely. Ms. Pettit assured Council that they are intent on getting this project done. Adele Mann agreed with Council Member Heffernan. She asked if the City has an extra $1.6 million to do this, noting that two weeks ago someone mentioned that there are budget shortfalls. She stated that this project has been going on since 1998 and asked what the timeline was for this. Vaughn Dyle, 310 Fernando, stated that he will be speaking as an arbitrator. He indicated that a number of years ago, an investment was made for $480,000 with the expectation that the investment would take off because other investors would come in and make money available. However, there was a change in the market, it did not take off, and there was a margin call for $1.6 million. He indicated that we have to assume that things might be a little slow and, in turn, there may be another margin call for $1 million in another year. Further, if things still did not work out and the investment did not bring in additional money, there might be another margin call for $1 million. He noted that the City will find itself with $3.6 million invested in a project that started out at $480,000. He suggested that Council look down the road and determine what they are willing to spend to have this happen. Bill Wren, Balboa Theater Director, stated that they are willing to put in $200,000 to help pay for the difference in the appraisal cost for the additional building. He indicated that having the property eliminates the need for a basement and would save them about $1.4 million. He stated that they found out from the Building Director that they can easily separate the building so the City can sell the remainder of it in order to recoup some money. He stated that he did not know there was any consideration of starting the project unless the building was self sustaining and, if something went wrong, the City would still have a marketable building. He believed that there is no value lost and there is no need to force the City into putting more money into the project. Council Member Adams stated that he met with Mr. Wren and Ms. Pettit last week to express the same concerns that Council Member Heffernan has. He indicated that he suggested that they generate a business plan to show how they plan to move forward. He stated that, based on the information they have, he does not feel comfortable and would like to see an update to the plan, what their fundraising goals are, and the next steps. Mr. Wren stated that the business plan that Council has did not include income because they could not determine how fast they would receive donations. He indicated that the economic portion is what they think the costs would be to carry them through the building process. He stated that they would be happy to provide Council with more information, but they would have to second guess the donation amounts. He added that the timing for the construction and its cost are correct if Council acquires the Orange Julius building. Council Member Adams stated that he would be more comfortable about this investment if he had various scenarios about different fundraising successes and what they do if they reach certain levels. He indicated that he Volume 55 - Page 7 City of Newport Beach Study Session Minutes February 26, 2002 INDEX would be willing to support this if he sees better evidence that this will work. He suggested that Council receive quarterly reports from the Board. Mr. Wren stated that they could do that and that Council is welcome to attend the meetings. He indicated that the City can also have a City representative on the Board. Mayor Ridgeway added that, as part of the business plan, he would like an estimate on how much it will cost to bring the theater to a shell exhibit because once it is a shell exhibit, the City has something marketable if they do not perform. Mr. Wren reported that they would need to raise $1.2 million to get it to that stage, but he will get these numbers to the City Manager. Council Member Glover expressed the opinion that the Board is better off not having a Council Member on it. She stated that she was on the Board for the Laguna Art Museum for three years and for the Orange County Museum, and that raising money was really tough for them even though they are established entities. In response to Council Member Glover's questions, Mr. Wren indicated that their budget will be about $635,000 /year once they are operational, but the net is less than that. He stated that they will still be in the negative about $150,0001year. Council Member Glover noted that, when the operating budget for an art institution is over $300,000 /year, it gets more difficult to raise money. She indicated that she is interested in seeing how the new business person analyzes this since there is a direct correlation between the operating budget and donations. Mr. Wren stated that the job description for the business person is strong and that the theater realizes they are a business, not just a theater. He indicated that they will be bringing more people onboard at the correct stages of the theater. Mayor Pro Tern Bromberg encouraged Mr. Wren to provide a good business plan as soon as possible because this will need to come back as an action item. Further, he suggested that they meet with Council Members in the event they have concerns about the plan. Sue Cannon, Principal of Orange County Public Relation, stated that she has served as the publicist for the Balboa Theater for the past 5Y2 years when it was a mere thought. She reported that they specialize in non - profit organizations in Orange County and has been doing this for about 20 years. She indicated that she is proud to say that the theater has accomplished hallmark fundraising techniques within a short period of time. She stated that, 2% years ago, as Founding President of the Divas they have been able to triple their net proceeds and also brought in over 130 members to the Guild. She indicated that everyone is vying for volunteer time and money. She believed that this exists because of the leadership that has been evident with this Board and its mission to recreate one of the oldest theaters in Orange County. She stated that they did have a hiccup, but are moving full steam ahead knowing that they have a lot of work to do. Ms. Cannon reported that part of their research when they started was to look at other theaters in Orange County, their plans, and how they started. She stated that all the theaters are asking for money, but no one thinks this can be done overnight or quickly. She indicated that she will do the research for the Board and will let Council know the statistics on how long it takes to actually open a theater. She believed that the theater is like the Laguna Playhouse because they are creating the theater from an old building. She Volume 55 - Page 8 City of Newport Beach Study Session Minutes February 26, 2002 emphasized that the fundraising efforts are way ahead of schedule. Dick Ashoft, owner of Bubbles, stated that he lives in the Village and has a business there. He indicated that the City has the opportunity to buy a piece of land and if it does not purchase it, someone else will. He stated that he bought Bubbles for $740,000 three years and, at Christmas, Denny's offered him $1.5 million, but he turned it down. He expressed the opinion that the area is not doing well but thanked Council for cleaning it up because it will be beautiful when it is done. He indicated that urban developers told him that the only thing that will change the area is if there was a four hour venue. He believed that the City needs the theater and more things like it because it will attract people to the area for at least four hours. He emphasized that the price of the property will only increase, and stated that, if the theater is lost, at least the City can sell the property. Council Member Heffernan asked if this decision should be looked at relative to how the City is doing during the mid - budget year and projections for next year, and asked which fiscal year this will fall into. He noted that the City has some shortfalls that are pending. Mayor Ridgeway stated that some type of budget analysis should also be made part of the presentation if this goes to a closed session. Council Member Heffernan stated that the theater supporters should probably hear what the Administrative Services Director tells Council about the shortfalls so they understand that Council is not just being hard on them, but is facing a multi - million dollar shortfall. 4. CITYWIDE WAYFINDING & DIRECTIONAL SIGNAGE PROGRAM: OVERVIEW OF PROPOSED PROJECT AND SCOPE OF PROFESSIONAL DESIGN SERVICES (contd. from 11/13/01). Assistant City Manager Wood reported that one of the recommendations from the Balboa Peninsula Planning Study in 1998 was to do a public signage program for the Peninsula. She stated that they brought a report to Council and staff was given the direction to try to implement a Citywide directional signage program. She added that this was backed by the Economic Development Committee (EDC) because their study on how to enhance the City's Transient Occupancy Tax recommended identifying ways to improve, coordinate, and simplify public and visitor signage throughout the City. She reported that this was brought to Council and, in 2000, Council identified $50,000 for the program. Ms. Wood stated that a Request for Proposals (RFP) was issued and five firms responded. She reported that Hunt Design and Associates is the firm that staff and the review committee (EDC members) felt would be best for the project. She indicated that this was presented to Council at the November 13, 2001, Council meeting. She stated that, following Council's concerns, Hunt Design removed using different icons for each district from the scope of services but still kept some type of identification for each district; removed the pedestrian mapping system in high tourist areas; included engineering services; and included requiring that the consultant have errors and omission insurance. She stated that, as a result of the revisions to the scope of work, the project cost is about $80,000, which is a reduction of $3,700 from the original project cost that was presented to Council. She indicated that Wayne Hunt, owner of Hunt Design, and John Temple, project manager, are present tonight. Volume 55 - Page 9 INDEX C -3495 Citywide Wayfinding and Directional Signage Program (38) City of Newport Beach Study Session Minutes February 26, 2002 INDEX John Temple, Hunt Design and Associates, stated that Council also had concerns about the aesthetic approach that they may take. He showed slides and reported that the Manual for Uniform Traffic Control Devices (MUTCD) is the guidebook for all highway signs, adding that The Irvine Company has been the de facto directional system for the City. Regarding the district identity signs, he stated that, although they are scaled well and the placement is good, they seem to be inconsistent and not every district is covered by them. He indicated that their approach would be to look at all the signs and come up with a systematic approach for dealing with all the various elements. He explained that the benefits of doing this include consistency and conformity with the MUTCD guidelines. He stated that by being consistent with all the messages, it reinforces the wayfinding for the driver who is trying to locate each district. Regarding building a civic identity, Mr. Temple stated that Beverly Hills has latched onto its identity which has become an icon for them. He reported that it is important to maintain the district identity; however, the look does not have to be overbearing. He noted that, for Sacramento's signs, color is the distinguishing factor between their district signs. He emphasized the ability to eliminate sign clutter by consolidating messages and simplifying the wayfinding. He added that creating a cross synergy between districts is also important so someone who is visiting one district will realize that there are other things to see in the City and make a trip to the other areas. Mr. Temple presented a matrix to describe where Newport Beach might lie relative to aesthetics and identity, communication and effectiveness, and the MUTCD guidelines. He explained that the City's signs may communicate and be effective, but it does not have much in terms of aesthetics and style. He stated that they are not sure how the City's signs would look, but believe they will communicate effectively and yet have some degree of style. He indicated that they would achieve this look by talking to user groups and staff, conducting historic research, and conducting extensive mockup testing to ensure they have the correct number of messages so drivers are not confused. Council Member Glover stated that one of Council Member Adams' points at the previous meeting was that `less is more ". She agreed that consistency and font are very important in signage, adding that she likes the signs to only have two colors. She stated that, even though there are several districts, there should be a way to connote that without having to change the fonts, etc. She emphasized that she does not want anything cutesy. Council Member Adams believed that this is on the right track and that he appreciates Hunt Design addressing some of his previous issues. He stated that he suspects that this effort is under budgeted and that he is skeptical that the City is going to get the product that Council expects for the fee they are charging. Mr. Temple stated that, if they accept the contract, they will be committing to delivering the product. He agreed that it is a little skinny but these are skinny days. He reported that similar projects for cities of this scale have similar budget ranges. He stated that, although he wished there were an additional 15% or 20 %, they have never not delivered. He reported that they tend to struggle with the meetings and delays, but 1/3 of their work is in this category and they seem to be completing the projects to their business satisfaction. Volume 55 - Page 10 City of Newport Beach Study Session Minutes February 26, 2002 Council Member Adams stated that he is alright with the course they are on, but suggested that Council see conceptual and final plans before Hunt Design hits the streets in order to be dialed into the review process. He reported that he has a problem with the Los Angeles icons because no one will know what they are until they are right on top of the signs because they are illegible. Mr. Temple reported that they have removed those icons. He explained that the icons are tied into the public mapping system and agreed that they are initially hard to see but will eventually be recognizable by the colors and shapes, and by the maps that the hotels provide visitors. Mayor Ridgeway expressed the opinion that Hunt Design is on the right track because the City needs a master, unified sign program. He stated that tonight's presentation was much simpler, cleaner, and more understandable. He noted that Council does not vote on study session items. Council Member Adams recommended that staff bring the contract back at the next meeting. John Cassidy, Conference and Visitors Bureau Executive Director, stated that his interest in this project is to help visitors enhance their visit to the City. He also agreed with keeping the sophisticated flavor of the City intact and noted that the opposite of wayfinding is disorientation. He believed that this is a very important project for the visitors; should reflect the true nature of the City; should be very legible, direct and to the point; and should enable the visitors to navigate and find things easily and with confidence. He stated that he especially likes the idea of eliminating the clutter as this would have many positive implications. He indicated that the signs should not be cartoonish, but should have some unifying thread. He added that this may keep some of the visitors out of the prominent neighborhoods and even enhance traffic flow. He recommended that Council endorse the project. Don Glasgow, Chair of the Corona del Mar Business District, complimented everyone for pulling this program together, as it is well overdue. He expressed his hope that the program reeks with quality and is unique. Further, he hopes that there is a program standing behind it to maintain the signs. Regarding identifying the various business districts, he reported that his committee a month ago decided to take on the monument issue in Corona del Mar to identify the business districts. He stated that, with Vision 2004, they are discussing doing something unique and special, not cute or unusual. He added that they unanimously voted to move forward on this over the next 12 months. He believed that they can coordinate very well with this program. He added that they want to be very involved with the monument signs because they are extremely important in giving the proper impression of Corona del Mar. He emphasized that their business district needs this now. Sherry Druery, Wilma's Patio Restaurant, stated that she is in favor of new signage because getting to Balboa Island can be confusing to visitors. She indicated that she is constantly giving directions and would love to see better signs, especially coming from the freeway. She believed that there is so much diversity within the City with Balboa Island, Lido Island, and the Balboa Peninsula. She stated that, unless you live here, it is very confusing. PUBLIC COMMENTS — None. Volume 55 - Page 11 INDEX City of Newport Beach Study Session Minutes February 26, 2002 - 5:50 p.m. k**MMMMMMMkkkkkkkkkkkRkkk * kkkkk The agenda for the Study Session was posted on February 20, 2002, at 5:45 p.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. City Clerk Recording Secretary Mayor Volume 55 - Page 12 INDEX CITY OF NEWPORT BEACH City Council Minutes D Regular Meeting R^ rr February 26, 2002 - 7:10 p.m. �"if INDEX STUDY SESSION — 4:00 p.m. CLOSED SESSION — 6:00 p.m. A. RECESSED AND RECONVENED AT 7:10 P.M. FOR REGULAR MEETING B. ROLL CALL Present: Heffernan, O'Neil, Bromberg, Glover, Adams, Proctor, Mayor Ridgeway Absent: None C. CLOSED SESSION REPORT — None. D. PLEDGE OF ALLEGIANCE — Mayor Pro Tern Bromberg. E. INVOCATION — Bishop Mike Browning, Newport Beach Stake — Church of Jesus Christ of Later -Day Saints. F. PRESENTATIONS Karen Evarts, former President of the Newport Beach Sister Cities Association, introduced the seven winners of the Okazaki essay contest, "What I Can Do to Improve International Exchange and Understanding ". She explained that the City of Okazaki sponsors an annual Citywide essay contest with the winners receiving a trip abroad. Mayor Ridgeway presented each of the winners with a gift on behalf of the City and the City Council. Ms. Evarts also introduced Wendell Fish, the founder of the Association. The group thanked the Mayor and the City, and expressed their sympathy for the events of September 11, 2001. A gift was also presented to Mayor Ridgeway. G. NOTICE TO THE PUBLIC H. 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 announced that, earlier in the day, the Board of Supervisors by a unanimous vote approved Scenario 1 and directed staff to return with amendments to the John Wayne Airport (JWA) Settlement Agreement within 90 days. She added that the Board also certified the Environmental Impact Report (EIR). Council Member Glover stated that Volume 55 - Page 13 City of Newport Beach City Council Minutes February 26, 2002 INDEX the City has been working on the issue since December of 2000 and that it protects the City from expansion at the John Wayne Airport. She stated that Newport Beach and the other corridor cities were present at the meeting to testify before the Board. She complimented the corridors' mail program put together by City Manager Bludau. She additionally acknowledged the efforts of Congressman Cox and Supervisor Spitzer, and the members of the JWA Settlement Extension Ad Hoc Committee, which included Council Members Proctor and O'Neil, City Manager Bludau, City Attorney Burnham and Senior Planner Alford. Lastly, Council Member Glover thanked the City Council and the El Toro Re -Use Planning Authority ( ETRPA), noting the wide support the effort received. Council Member O'Neil stated that Scenario 1 was one of three scenarios reviewed under the EIR. He noted that the original agreement was entered into between the City, the County, Stop Polluting Our Newport (SPON) and the Airport Working Group (AWG) in 1985. He stated that it placed limitations on the operations at the John Wayne Airport, but was due to expire in 2005. Council Member O'Neil stated that the EIR presented to the Board retains most of the noise limitations, although has some modest increases in the annual number of passengers that can be served. He complimented the efforts of Council Member Glover and stated that the agreement will go before the Board within 90 days for formal approval. Lastly, he noted the accomplishment of receiving such unity and support for the effort. Council Member Proctor stated that he was the Chairman of the John Wayne Airport Commission when the previous settlement agreement was negotiated and formalized. He thanked Council Member Glover, City Manager Bludau, City Attorney Burnham, ETRPA and the City staff for bringing about such wide support. Council Member O'Neil additionally acknowledged Supervisor Silva. Mayor Ridgeway noted that Supervisor Silva was instrumental in having the issue voted on prior to the March 5, 2002, election. Mayor Pro Tem Bromberg stated that a great deal of recognition is deserving for all those involved with the issue. Mayor Pro Tern Bromberg stated that the City Council has received numerous a -mails regarding the proposed Mormon Temple at Bonita Canyon. He stated that many of them deal with the height of the steeple and the color of the temple. Mayor Pro Tern Bromberg stated that most of the a -mails imply that the City is opposed to the Temple. He noted that he hasn't heard of any objections or complaints regarding the building of the temple itself, and that it still needs to go through the EIR process. Mayor Pro Tern Bromberg asked for an update on the extension of the lease with the American Legion. City Manager Bludau stated that he would schedule a meeting of the American Legion Site Lease Volume 55 - Page 14 City of Newport Beach City Council Minutes February 26, 2002 for Friday, March 1, 2002. Council Member Heffernan stated that the a -mails regarding the Mormon Temple are to be expected since it will serve a countywide religious purpose. He stated that he has conducted a survey within the "Port" streets and District 7 areas, and not all of the comments have been favorable. Council Member Heffernan stated that many people in the City have been displeased with their internet cable service. He noted that the contracts with Adelphia and Cox are up for renewal and the Ad Hoc Telecommunications Committee is working on the matter. He announced that a focus group meeting would be taking place on March 14, 2002, and that additional opportunities through the end of the fiscal year would be available for people to express their viewpoints. Council Member Heffernan stated that he has received extensive complaints regarding the length of time it takes to get a building permit in the City. He requested that a report be provided at a future Study Session regarding the problem and what can be done to improve the situation. Mayor Ridgeway stated that the City is beginning the second phase of the general plan update process with the scheduling of a series of neighborhood workshops. He announced that eight of them would be taking place in different areas of the City starting on Monday, March 18, 2002, and running through April 10, 2002. Mayor Ridgeway stated that the purpose of the individual workshop sessions is for City staff and trained community volunteers to conduct more extensive outreach to groups, neighborhoods and individuals in the City's continuing effort to reach and record information about what the citizens want in the general plan. I. CONSENT CALENDAR READING OF MINUTESIORDINANCES AND RESOLUTIONS 1. MINUTES OF THE ADJOURNED REGULAR AND REGULAR MEETING OF FEBRUARY 12, 2002. 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 S. EXTENSION OF TERM OF AFFORDABLE HOUSING TASK FORCE. Adopt Resolution No. 2002.20 extending the term of the Affordable Housing Task Force for one year. Volume 55 - Page 15 INDEX Res 2002 -20 Affordable Housing Task Force (24) City of Newport Beach City Council Minutes February 26, 2002 INDEX CONTRACTS AND AGREEMENTS 4. APPROVAL OF AMENDMENT NO. 1 TO THE PROFESSIONAL C -3515 SERVICES AGREEMENT FOR CONSTRUCTION SUPPORT Construction SERVICES WITH PRO SOURCE, INC. Approve Amendment No. 1 to Support the Professional Services Agreement for construction services with Pro Services Source, Inc. (38) 5. EASTBLUFF PARK WALKWAY RECONSTRUCTION, PHASE II, C -3334 (C -3334) — COMPLETION AND ACCEPTANCE. 1) Accept the work; Eastbluff Park 2) authorize the City Clerk to file a Notice of Completion; 3) authorize the Walkway City Clerk to release the Labor and Materials Bond 35 days after the Reconstruction, Notice of Completion has been recorded in accordance with applicable Phase II portions of the Civil Code; and 4) release the Faithful Performance Bond (38) one year after Council acceptance. 6. 2001 -2002 SIDEWALK, CURB AND GUTTER REPLACEMENT, C -3427 (C -3427) — COMPLETION AND ACCEPTANCE. 1) Accept the work; 2001 -2002 2) authorize the City Clerk to file a Notice of Completion; 3) authorize the Sidewalk, Curb, and City Clerk to release the Labor and Materials Bond 35 days after the Gutter Replacement Notice of Completion has been recorded in accordance with applicable (38) portions of the Civil Code; and 4) release the Faithful Performance Bond one year after Council acceptance. 7. Item removed from the Consent Calendar by a member of the audience. 8. Item removed from the Consent Calendar by Council Member Heffernan. MISCELLANEOUS ACTIONS 9. BUDGET AMENDMENT TO TRANSFER GRANT FUNDS IN THE BA -030 AMOUNT OF $10,000 FROM PACIFIC LIFE FOUNDATION AND Disaster THE EMERGENCY MANAGEMENT ASSISTANCE GRANT Preparedness PROGRAM TO FIRE DEPARTMENT FOR DISASTER (40/41) PREPAREDNESS. Approve budget amendment (BA -030). 10. BUDGET AMENDMENT TO INCREASE REVENUE ESTIMATES BA -031 AND EXPENDITURE APPROPRIATIONS FOR LITERACY Library SERVICE PROGRAMS IN THE AMOUNT OF $9,622 DUE TO (40/50) RECEIPT OF CALIFORNIA LITERACY CAMPAIGN MATCHING FUNDS (CLSA). Approve budget amendment (BA -031). 11. Item removed from the Consent Calendar by Council Member Heffernan. 12. MAXIMIZING PUBLIC ACCESS TO CITY PARKS. Approve Council Policy I -28/ Policy I -28, Maximizing Public Access to City Parks. Parks (62/69) 13. REFERRAL OF POLYGRAPH ISSUES INVOLVED IN THE Polygraph/ Volume 55 - Page 16 City of Newport Beach City Council Minutes February 26, 2002 INDEX HIRING PROCESS OF PUBLIC SAFETY EMPLOYEES TO THE CIVIL SERVICE COMMISSION FOR REVIEW AND RECOMMENDATIONS. Refer the role of polygraph examination and polygraph examiners' experience levels in the hiring process for public safety employees to the Civil Service Commission for review. Motion by Mayor Pro Tem Bromberg to approve the Consent Calendar, except for those items removed (7, 8 and 11). The motion carried by the following roll call vote: Ayes: Heffernan, O'Neil, Bromberg, Glover, Adams, Proctor, Mayor Ridgeway Noes: None Abstain: None Absent: None J. ITEMS REMOVED FROM THE CONSENT CALENDAR APPROVAL OF CONTRACT FOR PURCHASE OF PUBLIC ACCESS COMPUTERS. Jim Hildreth, 120 The Grand Canal, asked what would happen to the computers that are scheduled to be replaced. Mayor Ridgeway suggested that Mr. Hildreth contact the City Manager's office or the Community Services Director for an answer to his question. Motion by Mayor Pro Tem Bromberg to approve the bid in the amount of $40,603.63, for the purchase of 53 computers from Dell Marketing L.P. to replace computers used for the public in the Newport Beach Public Library System. The motion carried by the following roll call vote: Ayes: Heffernan, O'Neil, Bromberg, Glover, Adams, Proctor, Mayor Ridgeway Noes: None Abstain: None Absent: None 8. EXTENSIONS TO LEASES AT 1700 AND 1770 WEST BALBOA ( MARINAPARK SITE): GIRL SCOUT HOUSE AND MARINAPARK Referring to the Marinapark leases, Council Member Heffernan stated that Section 8F of the Lease Extension regarding the right of first refusal should be reworded to allow the City to accept or reject the terms of a third party if an owner decides to sell. Assistant City Manager Kiff stated that two leases are being considered Volume 55 - Page 17 Safety Employees/ Civil Service Board (66) C -3516 Public Access Computers for Library (38) C- 1784/C -1955 Marinapark Leases/ Girl Scout House and Residences (38) City of Newport Beach City Council Minutes February 26, 2002 Ala►. at the current meeting. He stated that staff will work on the language as requested by Council Member Heffernan on the Marinapark lease. He further explained that staff is recommending that testimony be taken at the current meeting, but that the Marinapark tenants also be given more time to review the revisions to their lease and action not be taken until the City Council meeting of March 12, 2002. Council Member Heffernan asked for an outline of the process to notify the tenants of the new rent rate. Assistant City Manager Kiff explained that if the lease is approved, the City would provide a 90 -day notice to the tenants. Cary Lowe, Pasadena, attorney for the Marinapark Homeowners Association, stated that the lease extension has been reviewed and discussed with staff. He noted that the proposed extension contains a term of one year, but that Marinapark is not expected to close for at least three years. He stated that it would be beneficial to the tenants to have an extension beyond one year. He explained that it would provide stability and certainty for the tenants, even though the City would still retain the option to give notice when Marinapark is expected to close. Mr. Lowe stated that it would also provide the tenants with an incentive to upgrade their units. In regard to the rent levels, he stated that the tenants have done some research and found the rates to be over market. He explained that the levels set by the City don't take into account the short -term tenancy. He added that the levels might be appropriate for a longer term lease extension. Mr. Lowe suggested that the City conduct a third -party objective analysis on what the rents should be for a one -year lease compared with a three -year lease. He stated that a longer term lease might justify a higher rent rate. Tom Hyans, President of the Central Newport Beach Community Association, which includes Marinapark, stated that for more than 25 years the Association has supported the extension of the leases at the Marinapark site. He stated that the Marinapark mobile home park is a good neighbor and contributes to the City's revenue. He stated that the Association encourages the renewal of the lease for at least three years. Mr. Hyans further noted that the American Legion should also be accommodated. Dolores Otting stated that when construction began on the Balboa Bay Club, the City reduced their rent by 50 %. She agreed that the Marinapark lease should be extended for as long as possible. Daniel Shea, Marinapark resident, stated that Marinapark is all he has and it would be a tremendous hardship to have his rent increased. He stated that he would be forced to move and wouldn't know where to go. He asked that the City Council show some compassion. Council Member Glover requested that staff provide the City Council with the minutes from previous meetings when the issue was discussed. She recalled that the City Council took action to help the residents of Volume 55 - Page 18 City of Newport Beach City Council Minutes February 26, 2002 INDEX Marinapark, but that the residents also asked for reasonable rent increases. Mayor Pro Tem Bromberg also recalled that the residents wanted to pay fair market rate. Stewart Berkshire, 1770 W. Balboa Boulevard, Marinapark resident, stated that he addressed the City Council in 1997 and proposed that the 1985 lease that was due to expire in 2000 be extended for a greater length of time at fair market rent. He explained that it would have doubled their rents at the time, but was conditional on the longer lease. Mr. Berkshire stated that Marinapark pays more per acre than the Balboa Bay Club or Beacon Bay. He concluded by saying that a longer lease results in higher fair market value. Council Member Adams stated that the rents at Marinapark have been held low in lieu of relocation reimbursements. He stated that this has been a part of the lease extensions for a number of years. City Manager Bludau confirmed that the rents have been held artificially low because it was always known that, at some point, the Marinapark residents would have to relocate. Mr. Berkshire stated that their rent has never been reduced. Council Member Adams stated that the tenants at Marinapark have each signed an acknowledgement in their lease agreements that the rental rates are set at a level to accommodate future relocation payments. Mr. Berkshire stated that this is true, but that their rental rates have never been reduced. Betty Berkshire stated when she and her husband purchased their mobile home in 1987, they priced leases in other mobile homes around the bay. She stated that Marinapark was equivalent at that time. She stated that they have had regular Consumer Price Index increases each year, but that their rents have never been reduced. Assistant City Attorney Clauson stated that staff is recommending that the item be continued to the City Council meeting of March 12, 2002. She stated that additional information and revisions to the lease would be provided at that time. Council Member Heffernan confirmed with City Manager Bludau that the action on the two leases could be taken separately. Motion by Mayor Pro Tem Brombere to authorize the Mayor to execute the Amendment to the Lease for the Girl Scout House. The motion carried by the following roll call vote: Ayes: Heffernan, O'Neil, Bromberg, Glover, Adams, Proctor, Mayor Ridgeway Noes: None Abstain: None Absent: None Volume 55 - Page 19 City of Newport Beach City Council Minutes February 26, 2002 Council Member Adams stated that there seems to be a discrepancy on the history of the leases. He requested that this be cleared up in the staff report for the March 12, 2002, meeting. Mayor Ridgeway agreed and requested that the present value for the relocation assistance also be provided. He added that the lease agreements do include a clause regarding the relocation. He also suggested that the City Manager and the Assistant City Attorney could possibly meet with Cary Lowe. Motion by Mayor Pro Tem Bromberg to continue the item to authorize the Mayor to execute a new Lease Agreement between the City and each resident of Marinapark to March 12, 2002, with additional information to be provided, as requested. The motion carried by the following roll call vote: Ayes: Heffernan, O'Neil, Bromberg, Glover, Adams, Proctor, Mayor Ridgeway Noes: None Abstain: None Absent: None 11. BUDGET AMENDMENT TO TRANSFER FUNDS IN THE AMOUNT OF $30,000 FROM THE LIBRARY LIABILITY ACCOUNT TO THE 2002 DISTINGUISHED SPEAKERS LECTURE SERIES. Council Member Heffernan asked for a brief report on who pays for the Distinguished Speakers Lecture Series. Community Services Director Kienitz stated that the Lecture Series is a joint project of the Newport Beach Public Library Foundation and the City's library system. She stated that the money received through donations and tickets sales is held in a holding liability account, and budget amendments are made to transfer the funds to the Lecture Series account. Council Member Heffernan confirmed with Community Services Director Kienitz that the program is cost neutral to the City. Motion by Council Member Heffernan to approve the budget amendment (BA -032). The motion carried by the following roll call vote: Ayes: Heffernan, O'Neil, Bromberg, Glover, Adams, Proctor, Mayor Ridgeway Noes: None Abstain: None Absent: None Volume 55 - Page 20 INDEX BA -032 Library (40/50) City of Newport Beach City Council Minutes February 26, 2002 K. PUBLIC COMMENTS INDEX Mary Carlyle Porter, 700 Larkspur Avenue, stated that the Canary Island date palms that line Marguerite Avenue in Corona del Mar have a serious disease and are being replanted with King palms. She stated that the replanting is breaking away from the continuous look and taking away one of Newport Beach's historical landmarks. She provided photos to illustrate her point and asked the City Council to consider planting smaller Canary Island date palms, with the understanding that they will require increased care and treatment. She stated that the King palms, even upon maturity, won't have the stunning beauty that the Canary Island date palms have. Ms. Porter stated her understanding of the problem with the Canary Island date palms, but suggested that possibly a cure has been found for the disease that they have. City Manager Bludau stated that the Canary Island date palms are susceptible to disease and the King palms are not. He added that even newly planted Canary Island date palms will get the disease and that's why King palms are being used. Jim Hildreth, 120 The Grand Canal, requested that the documents he has repeatedly asked for be provided to him. He stated that he has many questions about the chronological order of events. Mr. Hildreth requested that the location of the records be provided to him or if they've been destroyed, that he be informed of this. Dolores Otting stated that in 1996 the voters of Newport Beach approved Measure Q, a measure that required curbside container refuse collection for existing or future residential units within City boundaries as of November 1, 1996, to be paid for from property tax revenue. She noted that the vote was 17,854 in favor of the measure, and 11,825 against. Ms. Otting stated that the City is paying for the residential curbside trash pick -up for the recently annexed Newport Coast area. She asked why Measure Q is not being enforced. Russell Niewiarowski, Santa Ana Heights, displayed a cartoon slide that he recently presented to the Mayor of the City of Irvine. Mr. Niewiarowski stated that a five -year extension of the John Wayne Airport Settlement Agreement is not the cure -all and that everyone needs to vote on March 5, 2002, against the Great Park Initiative. He stated that an airport at El Toro needs to be secured and that the V -Plan needs to be utilized. He stated that he is working on an initiative for a reasonable alternative airport for the November election, and he hoped that the City of Newport Beach would support it. Mr. Niewiarowski stated that a long -term solution needs to be secured and his group is trying to benefit the City. He asked that money, such as that being spent by the City on the Mormon Church, be directed to his group instead. Council Member Glover expressed her embarrassment and apologized for Mr. Niewiarowski's slide, which denigrated an elected official in Orange County. She stated that she does not condone it and pointed out that a Volume 55 - Page 21 City of Newport Beach City Council Minutes February 26, 2002 member of the public displayed it. Mayor Ridgeway echoed Council Member Glover's comments. He additionally noted that the extension agreement will be good through the year 2015, and not just for five years. City Attorney Burnham also pointed out that the City has not given money to the Mormon Church, although there is a contract for the environmental impact report that will be paid for by the church. Charles Griffin commended the City's efforts to attain Scenario 1, but noted that it does increase the flights and the number of gates without it being clear in the environmental impact report on who is negotiating the increases. Mr. Griffin stated that he is continuing to support the V -Plan for an airport at El Toro. He stated that Measure W needs to be opposed and an airport at El Toro needs to be secured. Mayor Adams stated that the City has publicly opposed Measure W, noting the proclamation that was signed the previous week by Mayor Ridgeway. Laura Dietz, Corona del Mar resident, noted the recent passing of Chuck Jones. Ms. Dietz stated that Mr. Jones was a Corona del Mar resident and created many famous animated characters. She noted that his personal spirit for never giving up is reflected in all of his characters. She suggested that, in the future, Mr. Jones be acknowledged in a permanent way, possibly at one of the City's playgrounds. She stated that she would pass her idea on to the Parks, Beaches and Recreation Commission. Council Member Glover noted that News Hour recently had a 15- minute segment on Mr. Jones and that it was very good. Mayor Ridgeway stated that Mr. Jones was truly an extraordinary person. L. ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES — None. M. PLANNING COMMISSION AGENDA AND ORAL STATUS REPORT 14. PLANNING COMMISSION AGENDA FOR FEBRUARY 21, 2002. Assistant City Manager Wood stated that the Planning Commission agenda of February 21, 2002, contained only one item. She stated that it involved the Cannery Lofts project, which consists of 22 mixed -use units in the Cannery Village area. She stated that the Planning Commission approved the project and that it is scheduled for public hearing at the City Council meeting of March 12, 2002. In response to Council Member Heffernan's question, Assistant City Manager Wood stated that Mayor Ridgeway called the project up for review, although certain aspects of the project would have already gone before the City Council regardless of the call up. Motion by Mayor Pro Tem Bromberg to receive and file the written Volume 55 - Page 22 INDEX Planning (68) City of Newport Beach City Council Minutes February 26,2002 report. The motion carried by the following roll call vote: Ayes: Heffernan, O'Neil, Bromberg, Glover, Adams, Adams, Mayor Ridgeway Noes: None Abstain: None Absent: None N. CURRENT BUSINESS 15. REVIEW OF THE PLANNING COMMISSION DECISION ON THE VAN CLEVE APPEAL (PA 2002 -002). Mayor Pro Tern Bromberg noted that the parties involved are discussing the matter and have agreed to have it continued. Motion by Mayor Pro Tern Brombere to continue the item to April 9, 2002. The motion carried by the following roll call vote: Ayes: Heffernan, O'Neil, Bromberg, Glover, Adams, Adams, Mayor Ridgeway Noes: None Abstain: None Absent: None 16. AWARD OF NEWPORT COAST RESIDENTIAL REFUSE COLLECTION CONTRACT AGREEMENT (contd. from 2/12/02). General Services Director Niederhaus stated that the staff report includes several clarifications and that the contract pertains only to Newport Coast refuse collection for single - family dwellings. Additionally, he stated that Assistant City Attorney Clauson's analysis of Ms. Otting's submission to the City Council is included with the staff report. Council Member Heffernan asked if California Code requires the City to extend a minimum term to the existing trash hauler in an annexed area. Assistant City Attorney Clauson stated it was confirmed that the remaining term of the contract with the County was 5 -%v years and the City is entering into a five -year contract. She noted that California Code requires five years or the remainder of the contract, whichever is less. General Service Director Niederhaus noted that "at no additional charge' is being deleted from Item 3 of Exhibit A, Refuse Contract Services. Mayor Ridgeway confirmed with General Services Director Niederhaus that the trash pick -up in the Newport Coast area is automated collection. Mayor Ridgeway additionally asked what the intent for service would be Volume 55 - Page 23 f �►• PA 2002.002 Van Cleve Appeal/ 213 Coral Avenue (68) C -3513 Newport Coast Residential Refuse Collection (38) City of Newport Beach City Council Minutes February 26, 2002 INDEX when the five -year contract expires. General Services Director Niederhaus stated that the City intends to receive competitive bids for the service. Referring to Paragraph 11 of the contract, Increase or Decrease in Scope of Work, Mayor Pro Tem Bromberg asked for an example of what would trigger additional services being needed. General Services Director Niederhaus stated that it is standard verbiage in all maintenance contracts and allows the City to add services that are out of the ordinary. Additionally, Mayor Pro Tem Bromberg asked how Waste Management handles recycling. General Services Director Niederhaus stated that part of the refuse is disposed of and another part consists of the recyclables that have been separated by the residents. General Services Director Niederhaus added that staff is studying the recycling surcharge. Council Member Heffernan asked for an explanation of what was included in the Newport Coast agreement with reference to refuse service. City Manager Bludau stated that only single - family residential units receive their refuse services for free. Council Member Heffernan confirmed that this is the same as the service provided to the rest of the City. Assistant City Attorney Clauson noted that the deletion of the language from Refuse Contract Services, as noted earlier by General Services Director Niederhaus, was done to remove redundancy since the monthly payment already includes the services. Dolores Otting stated that Waste Management was given a five -year notice on December 19, 2001, which wasn't necessary. She suggested that the competitive bidding process begin one year prior to the expiration of the contract. Ms. Otting asked for an estimate of the property tax the City would be receiving from Newport Coast, an estimate of the build -out of homes that will be receiving curbside refuse service and an estimate of the cost to provide Newport Coast the service for the next five years. She provided her own estimate of $884,000 per year. Ms. Otting noted that the residents of Bonita Canyon pay for their refuse service, and were also annexed after Measure Q was passed. She additionally asked about the recycling fees, why there are three different trash service scenarios in the City and if it is legal. Mayor Ridgeway requested that the City Manager's office respond to the inquiries in Ms. Otting's letter. Council Member Adams pointed out that public sessions were held when the fiscal analysis of Newport Coast was discussed and that the City was aware of the fiscal impacts of providing the refuse service. Mayor Pro Tem Bromberg asked if the residents of Bonita Canyon pay for their refuse service. General Services Director Niederhaus stated that they do. He added that some areas in the City pay for their own service because the City can't handle their bins or because an association has Volume 55 - Page 24 City of Newport Beach City Council Minutes February 26, 2002 INDEX chosen to select their own refuse company. He noted that the City has a list of seven to eight nonexclusive franchise waste haulers that can be used for either commercial or residential refuse service within the City. General Services Director Niederhaus stated that the City does not provide the refuse service in Bonita Canyon and no service was provided prior to annexation. Mayor Pro Tem Bromberg stated that it seems odd that some people pay for their refuse service and others do not. Council Member Adams stated that it was a part of the negotiations with Bonita Canyon and Newport Coast. Madeline Arakelian stated that Newport Beach is probably the only city in California that doesn't charge a franchise fee for a contract. She asked why the City didn't have the County continue to handle the refuse service in the Newport Coast area. She stated that it would have been beneficial to the City to allow the County to keep the contract and when it expired in five years, then decide what would be most beneficial to the City. Ms. Arakelian agreed that there are three different scenarios taking place in the City. In conclusion, she stated that she couldn't understand why the City would choose to pay Waste Management when no other city has done so in similar circumstances and when taxpayers' money could be better spent elsewhere. Assistant City Manager Kiff stated that the City is paying for curbside residential refuse service in the Newport Coast area, per the negotiated agreement. He noted that there was no one to negotiate with in Bonita Canyon. City Manager Bludau added that the contract is with the County, but that Newport Coast is now a part of Newport Beach. Council Member Adams additionally noted that the tax revenues from Newport Coast are now coming to Newport Beach, and that this is how the service is being paid. Assistant City Attorney Clauson stated that by having the nonexclusive franchise arrangement with the waste haulers, the City is unique and is why the additional five-year notice was given to Waste Management. Council Member Glover stated that most residents are satisfied with their refuse service. Motion by Council Member O'Neil to approve the contract agreement with Waste Management of Orange County, as amended, to provide residential refuse collection services in the Newport Coast area. Patrick Munoz, Newport Coast resident, stated that he is pleased with the annexation agreement that was negotiated with the City. He stated that he is at the current meeting representing Ware Disposal, and that he and his client had the opportunity to comment on the agreement. He acknowledged the City for its longstanding commitment to open competition in the trash industry as it allows an independent, local hauler, such as Ware Disposal, to compete successfully. Volume 55 - Page 25 City of Newport Beach City Council Minutes February 26, 2002 Council Member Glover noted that if Newport Beach were a new and planned community, the refuse service would be handled consistently. She stated that many people appreciate the differences in the City, even if it does mean that there are some inconsistencies. Council Member Heffernan asked Mr. Munoz if his client is in agreement that the City is obligated to enter into a five -year contract with Waste Management. Mr. Munoz stated that the City is obligated to honor any continuation rights that Waste Management may have under the Public Resources Code. He added that his client has never indicated to him that she believes she has the right to bid on the single - family curbside pick -up in Newport Coast. Mr. Munoz pointed out that it would be an entirely different conversation if it dealt with multi - family housing or commercial services. Mayor Ridgeway stated that he and Council Member O'Neil were on the negotiating committee. In terms of the financial analysis, he stated that there is expected to be a $3 million general fund increase above all service costs after the first year. The motion carried by the following roll call vote: Ayes: Heffernan, O'Neil, Bromberg, Glover, Adams, Proctor, Mayor Ridgeway Noes: None Abstain: None Absent: None 17. GENERAL PLAN ADVISORY COMMITTEE (GPAC). City Manager Bludau stated that Assistant City Manager Wood and the City Clerk have suggestions for handling the appointment process. Assistant City Manager Wood stated that prior to making the appointments, she wanted to clarify some of the roles of the general plan committees. She stated that the tasks of the General Plan Update Committee (GPUC) were to design a preliminary community outreach program, conduct the program, make a recommendation on the scale and scope of the general plan update and identify resources necessary to accomplish the update. The GPUC members felt that they were a steering committee to get the process started and suggested that a citizen -based advisory committee be established, which resulted in the General Plan Advisory Committee (GPAC). Assistant City Manager Wood stated that the tasks of GPAC are to review input received from the community • outreach program, to review information provided in technical studies, to review and make recommendations on the Vision and Strategic Directions Report, and to review and make recommendations on draft general plan policies. Assistant City Manager Wood referred to the matrix, provided in the supplemental staff report, which showed the GPUC recommendations for Volume 55 - Page 26 INDEX General Plan Advisory Committee (24) City of Newport Beach City Council Minutes February 26, 2002 INDEX the GPAC members. She stated that GPUC accepted the three nominations of the business community for the business representatives and the three nominations of the environmental community for the environmental representatives. All six names were shown in the matrix. Assistant City Manager Wood stated that GPUC decided on ten issue areas and made recommendations for each. She noted that for all but two of the areas, GPUC made a recommendation on the representative. For harbor issues and older commercial areas issues, GPUC couldn't make a final decision and recommended two members for each, leaving the final decision to the City Council. Assistant City Manager Wood noted that there were a total of 252 applications for the 37 vacancies. In the last column of the matrix, the GPUC recommendations for the at- large representatives were given by district. Each district contained more than the three representatives sought per district. Assistant City Manager Wood suggested that each council member propose three members for their individual district. She stated that City Clerk Harkless prepared a ballot that could be used for this purpose, as well as to select the members for the two issue areas mentioned earlier. Council Member Adams, GPUC Chairman, stated that GPUC used a similar matrix, only it was wall sized, for making their recommendations. He stated that after each GPUC member made their own independent recommendations, staff prepared colored cards, coded by age group, for each of the 252 applications and put a checkmark on the appropriate card for each recommendation. Council Member Adams stated that the checkmarks and open discussion were helpful in shortening the list. He stated that every effort was made to make the selection process as fair as possible, and that members of the public in attendance at the meetings were also invited to make comments. Council Member Adams suggested that at the current meeting after each council member has chosen their three at -large representatives, that the other council members have the opportunity to voice any concerns regarding the selections, as well as the recommendations by GPUC. He stated that the appointments should not be political. Council Member Heffernan confirmed with Council Member Adams that the council members could make their selections from any of the 252 applicants. Additionally, Council Member Heffernan suggested that District 7 be allowed to have four at -large representatives due to the increase in the district's population resulting from the recent redistricting. Council Member Adams stated that although any of the applicants could be chosen, some respect should be given to the GPUC recommendations. He noted that quite a bit of time and effort was put into the selections. Motion by Council Member O'Neil to accept the recommendations of GPUC as follows: Business Representatives — Roger Alford, Ron Yeo and Philip Volume 55 - Page 27 City of Newport Beach City Council Minutes February 26, 2002 Bettencourt. INDEX Environmental Representatives — Louise Greeley, Jan Vandersloot and Nancy Gardner. Issue Areas — Larry Root (Airport Issues), David Janes (Waterfront Residential Impacts), John Saunders (Airport Area Land Uses), Florence Felton (Residential Density), Don Webb (Circulation), Evelyn Hart (Parking), Dorothy Beek (Environmental Quality) and Jennifer Wesoloski (Culture & Arts). Mayor Ridgeway referenced a letter received earlier in the day from Philip Arst, spokesperson for the Greenlight Steering Committee. Mayor Ridgeway stated that he would look at the five -page letter closer and prepare a response, but noted that the letter objected to the process for selecting the GPAC members and the lack of Greenlight supporters among the recommendations. Mayor Ridgeway stated that he had no idea who voted in favor of Greenlight and who didn't. Secondly, Mayor Ridgeway referenced the staff report and GPUC's enforcement of Council Policy A -2 regarding multiple committee assignments. Mayor Ridgeway stated that he disagreed with GPUC and felt that advisory committees were of a short enough term that it was unfair to have an appointee resign from a standing committee to serve on an advisory committee, such as GPAC. Council Member Adams stated that he understood Mayor Ridgeway's opinion, but noted that GPUC decided to adhere to council policy and it would be unfair to change it at this point. Mayor Pro Tem Bromberg agreed with both Mayor Ridgeway and Council Member Adams. He asked Assistant City Manager Wood how many meetings GPAC is expected to hold. Assistant City Manager Wood stated that the committee will begin by meeting six times over a five -month period to complete the visioning process, and would additionally meet to review draft general plan policies. She guessed that the committee would exist for two to three years. Council Member Adams stated that the committee will have enough work and responsibility to keep the members busy. He stated that the premise of Council Policy A -2 was to have as many people as possible participate in local government. Mayor Ridgeway stated that it is sometimes difficult to fill all positions on some committees. He also noted that the council members can still select from any of the 252 applicants. Council Member Proctor stated that he had someone he'd like to appoint who also serves on another committee. Council Member O'Neil amended his motion to include the waiving of Council Policy A -2, Boards and Commission Appointments, regarding the Volume 55 - Page 28 City of Newport Beach City Council Minutes February 26, 2002 INDEX appointments to GPAC, pertaining to serving on more than one committee. Council Member Glover asked if any names could be added to the Older Commercial Areas list. Council Member Adams stated that the representatives recommended for each of the issue areas were chosen for that reason, but that they wouldn't necessarily represent that issue on the committee. He stated that additional names could certainly be added to any of the categories. Council Member Glover stated that she had not been lobbied for any of the positions. Adding to what Council Member Adams stated, City Manager Bludau noted that many of the recommended representatives indicated several issue areas on their applications. Philip Arst, spokesperson for the Greenlight Steering Committee, apologized that his letter didn't reach the City Council sooner. He explained that the letter had to be circulated among the members of the volunteer residents committee for approval. Mr. Arst stated that the voters in the City have twice sent the message that they want traffic contained and any growth to be beneficial. He stated that Greenlight shares the City's goal of developing a comprehensive update to the general plan, but that acceptance by the community can only be gained if the desires of the voters are met. He stated that a pro - development bias has already occurred, and that there are only two acknowledged Greenlight supporters on the eleven- member GPUC. Mr. Arst stated that the selection process for GPAC began with a biased application form that practiced age discrimination instead of qualifications, and resulted in a list of recommendations that is not representative of the voting public. Council Member Glover noted that how a person votes is not known and regardless of what someone says, it's not necessarily how they voted. Mr. Arst noted the building industry representatives, developers and architects on the list of recommendations. He additionally noted the nominees that aren't registered voters, or are current or former paid government employees or elected officials. He summarized his comments by saying that the list of recommendations is not representative of the 63% of the voters who supported Greenlight. Mr. Arst stated his understanding that traffic is not the only issue in the City. Mr. Arst suggested that the process for updating the general plan be defined, and that the updated general plan be as specific as the current one. Mr. Arst recommended that more Greenlight supporters be included in the process and on the committees, to more closely reflect representative government. Council Member Adams stated that the City Council is not a pro- Volume 55 - Page 29 City of Newport Beach City Council Minutes February 26, 2002 INDEX development majority. He specifically stated that characterizing himself as pro - development, when he has all along agreed with the premise of Greenlight, is inappropriate and unfair. Council Member Adams stated that GPUC's intent and outcome has produced a fair list of recommendations. Council Member Adams stated that he couldn't understand Mr. Arst's complaint that there has been age discrimination, noting that Mr. Arst seems to argue both sides of the issue. Additionally, Council Member Adams stated that people with land planning degrees aren't necessarily pro - development, and that many of the applicants talked about their concern for traffic and density in their applications. Council Member Adams stated that he attempted to solicit comments from Mr. Arst during the selection process and feels that he bent over backwards to accommodate everyone, particularly supporters of Greenlight because of the 63% vote in November of 2000. Mr. Arst stated that he couldn't present his viewpoints during the process because it took him time to review the applications and he then had to have his letter reviewed by the Greenlight committee. He stated that the results have proven his point, however. Council Member Adams stated that everyone should read the statements made in the applications by the people that were recommended. Mr. Arst stated that expressing concern for traffic and density doesn't necessarily indicate to what level. Mr. Arst stated that the application should have asked the applicant if they were Greenlight supporters. Council Member Adams stated that many people didn't support Greenlight, not because they liked development unchecked or because they wanted to add traffic to the City's streets, but because it wasn't consistent with representative government. Mayor Pro Tern Bromberg stated that he felt that the selection process was well done and that he didn't see it as being biased. He stated that the age of the applicants is very significant and relevant, since GPAC is planning the future of the City. Additionally, Mayor Pro Tern Bromberg noted that the issues that came out of the visioning process didn't all relate to Greenlight issues or traffic. He also noted that judging a person by just their occupation is unfair, since a person can be for or against development regardless of their occupation. Mayor Pro Tem Bromberg stated that the process isn't flawed and should be given a chance. He noted how well the Environmental Quality Affairs Citizens Advisory Committee (EQAC) has worked, with a diverse group of people involved in healthy discussions. Council Member Adams asked Mr. Arst to review his personal list of recommendations, noting that Mr. Arst would probably approve of the majority of them. Council Member Adams stated that GPUC nominated nearly every prominent Greenlight supporter. He added that it is possible that 63% of the people on the list of recommendations are Greenlight supporters. Mr. Arst stated that he does understand that there are other issues besides Greenlight and traffic, but how one approaches the issues is important. Tom Hyans, Greenlight supporter, stated that Mr. Arst has his belief regarding the selection process and GPUC's recommendations, and he Volume 55 - Page SO City of Newport Beach City Council Minutes February 26,2002 INDEX should be listened to and not demeaned. Mr. Hyans stated that he supported Greenlight because he didn't like the way things were going with a develop- oriented City Council. Dolores Otting agreed with Council Member Adams in regards to the council policy which states that a person can only be on one committee, and that the policy should be adhered to. She additionally agreed that GPUC's recommendations should be used, and noted that anyone can attend the GPAC meetings and participate. Phillip Lugar also agreed with Council Member Adams' support of the council policy that states that a person can only serve on one committee. Amended motion by Council Member O'Neil to waive Council Policy A -2, Boards and Commission Appointments, regarding the appointments to GPAC, which pertains to serving on more than one committee. Council Member Glover confirmed that GPUC discounted at least one applicant due to the belief that Council Policy A -2 should not be waived for the GPAC appointments. Mayor Ridgeway noted, however, that all applicants could still be considered. The amended motion carried by the following roll call vote: Ayes: Heffernan, O'Neil, Bromberg, Glover, Proctor, Mayor Ridgeway Noes: Adams Abstain: None Absent: None The original motion carried by the following roll call vote Ayes: Heffernan, O'Neil, Bromberg, Glover, Adams, Proctor, Mayor Ridgeway Noes: None Abstain: None Absent: None Council Member Adams summarized the procedure to follow by stating that each council member needs to vote on the ballots provided by the City Clerk for the two remaining issue areas and their at -large representatives. He suggested that the City Clerk read the votes and then the council members be given an opportunity to voice their opinions regarding the at -large representatives chosen. Motion by Council Member Adams to add an additional at -large representative to District 7. Council Member Glover stated that her district should also have a fourth member because her district voted more heavily for Greenlight than any Volume 55 - Page 31 City of Newport Beach City Council Minutes February 26, 2002 other district. INDEX The motion carried by the following roll call vote Ayes: Heffernan, O'Neil, Bromberg, Glover, Adams, Proctor, Mayor Ridgeway Noes: None Abstain: None Absent: None City Clerk Harkless announced the votes as follows Harbor Issues — John Corrough (O'Neil, Proctor, Bromberg, Adams, Mayor Ridgeway, Glover) and James Kerrigan (no votes received). Older Commercial Areas — Joseph Gleason, Jr. (Adams, Bromberg, O'Neil) and Marie Marston (Mayor Ridgeway, Proctor). District 1 at -large representatives — Julie Delaney, Tom Hyans and Brett Shaves. District 2 at -large representatives — Karlene Bradley, Mike Johnson and Alan Silcock. District 3 at -large representatives — Marian Bergeson, Todd Knipp, Mike Ishikawa and Don Krotee. Due to lack of support for having four at -large representatives from District 3, Council Member Glover removed Don Krotee from her list of recommendations. District 4 at -large representatives — Carol Boice, Carl Ossipofff and Jackie Sukiasian. District 5 at -large representatives — Heather Johnston - Reynolds, Ed Siebel and Phil Lugar. District 6 at -large representatives — Seth Darling, Laura Dietz and George Jeffries. District 7 at -large representatives — Robert Shelton, Bob Hendrickson, Catherine O'Hara and Yvonne Houssels. Motion by Mayor Ridgeway to ratify the following appointments: Issues Areas — John Corrough (Harbor Issues) and Joseph Gleason, Jr. (Older Commercial Areas). District 1 at -large representatives — Julie Delaney, Tom Hyans and Brett Shaves. Volume 55 - Page 32 City of Newport Beach City Council Minutes February 26, 2002 INDEX District 2 at -large representatives — Karlene Bradley, Mike Johnson and Alan Silcock. District 3 at -large representatives — Marian Bergeson, Todd Knipp and Mike Ishikawa. District 4 at -large representatives — Carol Boice, Carl Ossipofff and Jackie Sukiasian. District 5 at -large representatives — Heather Johnston - Reynolds, Ed Siebel and Phil Lugar. District 6 at -large representatives — Seth Darling, Laura Dietz and George Jeffries. District 7 at -large representatives — Robert Shelton, Bob Hendrickson, Catherine O'Hara and Yvonne Houssels. Council Member Heffernan confirmed with Council Member Adams that he believed strongly in his three recommended representatives. The motion carried by the following roll call vote: Ayes: Heffernan, O'Neil, Bromberg, Glover, Adams, Proctor, Mayor Ridgeway Noes: None Abstain: None Absent: None Mayor Ridgeway suggested that Marian Bergeson be appointed as the Chairman of GPAC due to her experience in local government. Council Member Heffernan stated his concern for her being so well known in the community and possibly stifling input. Council Member Adams additionally noted that she was an outspoken Greenlight critic. Responding to a suggestion that the committee decide, Assistant City Manager Wood stated that it would take too long for the committee to make the appointment since they don't know one another. Council Member Heffernan suggested that Tom Hyans be appointed as Chairman. Mayor Pro Tem Bromberg suggested that Laura Dietz be appointed. Mayor Ridgeway suggested that each council member submit a recommendation to the City Clerk and he'll make the appointment at the City Council meeting of March 12, 2002. Volume 55 - Page 33 City of Newport Beach City Council Minutes February 26, 2002 Council Member Adams suggested that the Urty Manager chair the first meeting. Assistant City Manager Wood stated that the first meeting of GPAC is expected to be held on March 11, 2002. Mayor Ridgeway stated that he would choose a neutral person who can be fair to both sides. City Clerk Harkless stated that a new Boards, Commissions and Committees roster would be distributed the following day. Mayor Ridgeway stated that a vice chair should also be chosen. He suggested that anyone with a recommendation submit it to the City Clerk. O. MOTION FOR RECONSIDERATION —None. P. ADJOURNMENT — 10:30 p.m. in the memory of Chuck Jones. eeeeeeeeeeeeeeaeereeeeeexe ,�x�ree The agenda for the Regular Meeting was posted on February 20, 2002, at 3:45 p.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. City Clerk Recording Secretary Mayor Volume 55 - Page 34 11013